Record Highs Pile Up Over Volatile Week on Wall Street

• The Dow Jones reached a fresh record high on Wednesday, while the S&P 500 and Nasdaq both notched record highs on Tuesday
• Amazon.com (AMZN) surged to a record high and crossed the $3 trillion market cap threshold
• Mixed earnings results drove individual stock volatility, with Eli Lilly and Doximity beating expectations while others like ON Semiconductor faced downgrades after quarterly misses

Market Summary: Record Highs Amid Volatility on Wall Street

Market Performance:

All three major U.S. indexes are on track for their second consecutive weekly gain despite notable volatility. The Dow Jones Industrial Average reached a fresh record high on Wednesday, while both the S&P 500 Index and Nasdaq achieved record highs on Tuesday. Amazon.com surged to a record high, surpassing the $3 trillion market capitalization milestone for the first time.

Key Market Drivers:

Friday's nonfarm payrolls data came in significantly below expectations, contributing to market volatility throughout the week. However, easing conditions on Thursday helped push the Dow to new heights before Thursday's close.

Earnings Highlights:

• Winners: ON Semiconductor posted a quarterly beat. Eli Lilly surged after beating estimates and raising guidance. Doximity overcame a fiscal Q1 earnings miss with a blowout revenue beat.
• Laggards: One unnamed company suffered downgrades and experienced a bear gap following a quarterly miss.

Stocks in Focus:

Workday is among names to watch in August, with cybersecurity stocks potentially positioned for a 5.5% gain by month-end. Dollar Tree is identified as a name to avoid currently.

Looking Ahead:

Next week brings a busy earnings calendar including Applied Materials, ASTS, Lumentum, and Rocket Lab. Analysts suggest current conditions could favor S&P 500 bulls, particularly when implied volatility outpaces the SPDR S&P 500 ETF.

Regulatory Note:

The elimination of the Pattern Day Trader (PDT) rule's $25,000 minimum account balance requirement is expected to increase retail trading participation.