Nasdaq 100 and S&P500: Oil Plunge Opens the Door for Growth Stocks

• Dow futures up 333 points (0.63%), S&P 500 futures gaining 0.49%, and Nasdaq-100 futures ahead 0.53% as oil drop eases yield pressure
• Three Fed committee members voted for an immediate hike last week; strong Friday payroll data (consensus 87,500 jobs vs. June's 57,000) could reignite September rate hike debate
• Key earnings from Palantir (after Monday close), AMD, McDonald's, Costco, and Disney this week will test whether market rally extends beyond a handful of AI and cloud stocks

Market Summary: Oil Drop Boosts Growth Stocks Amid Fed and Earnings Concerns

Key Market Movements

U.S. stock index futures opened higher on August 3, 2026, following a sharp overnight decline in crude oil prices. Dow futures rose 333 points (+0.63%), S&P 500 futures gained 0.49%, and Nasdaq-100 futures advanced 0.53%. The oil drop pulled Treasury yields lower, with the 10-year falling to 4.68% and the 30-year easing to approximately 5.23% after hitting 2007 highs last week.

Geopolitical Catalyst

President Trump canceled a planned military strike on Iran and indicated negotiations would restart, driving oil prices down. However, Iran stated no immediate plans exist for direct Washington talks, suggesting the market is trading on headlines rather than concrete diplomatic progress. Any reversal could push crude and yields higher, testing current market gains.

Technical Levels

The Nasdaq-100 needs to break above Friday's high of 28,725.75 to sustain momentum toward the 29,150-29,610 retracement zone. The S&P 500 trades above support at 7,493-7,540 with targets at 7,632-7,648. The Dow has rallied three consecutive days after hitting June lows, with resistance at 53,105-53,113.

Critical Data Ahead

Friday's payrolls report is crucial for determining September Fed rate hike risk. Consensus expects 87,500 jobs versus June's weak 57,000, with unemployment potentially rising to 4.3%. Strong wage growth could embolden the three Fed committee members who voted for immediate hikes last week. ISM manufacturing data releases Monday at 14:00 GMT.

Earnings Focus

Palantir reports Monday after close, testing whether AI software can monetize infrastructure investments proven by Amazon and Microsoft. AMD, McDonald's, Kraft Heinz, Costco, and Walt Disney report later this week, broadening the earnings narrative beyond mega-cap tech.