US Stock Market Trading Outlook For August 3-7: Is August Bearish Or Bullish For Nasdaq, Dow Jones, S&P 500?

The US stock market is entering a new month on August 3rd, and the overall weekly outlook is cautious. Wall Street ended the month of July on a mixed note with the Dow Jones and S&P 500 marginally up but the Nasdaq Composite and Nasdaq 100 indices crashing severely on a month-on-month basis. A host of macroeconomic data and stock-specific actions due to quarterly earnings is expected. The much-awaited report will be SpaceX's first quarterly report since its debut on Wall Street. Treasury yields and oil prices will continue to trend amidst geopolitical risks in West Asia.

US Stock Market Open On Monday, August 3?

There are no special holidays in August 2026, as per NYSE and Nasdaq data. Hence, trading in all indices will operate as normal throughout the month. Hence, Wall Street is open on August 3.

US Stock Market August 2026 Outlook

Last week, on July 31st, the DJIA closed at 276.97 points, or 0.53% higher, at 52,485.03, while the S&P 500 index rose by 52.09 points, or 0.70%, to end at 7,489.72. A strong rally was also seen in the Nasdaq Composite on Friday, which surged by 251.68 points, or 1%, to end the month at 25,373.85.

Following the latest bull run, the Dow Jones managed to end July 2026 higher by 179.79 points, or 0.34%, to 52,485.03. The S&P 500, although in green, recorded marginal gains of 6.49 points or 0.09%.

But there was no escape for either the Nasdaq Composite or the Nasdaq 100. In fact, Nasdaq 100 was brutally beaten. From July 1st to July 31st, the tech-heavy index, Nasdaq Composite, recorded a monthly decline of 666.18 points, or 2.6%. However, the Nasdaq 100 index crashed a whopping 1,534.94 points or 5.15% to end the month at 28,274.20.

Coming to August, this month is expected to be more bearish for Wall Street.

"We are entering a more bearish seasonal period for stocks, historically speaking, as we enter the August/September timeframe. Yes, late August/September is more bearish, but it's prudent to point out right now," said Nathan Peterson, the Director of Derivatives Research and Strategy for Charles Schwab in a note.

He added, "There could be more near-term upside to this rebound early next week, but I also acknowledge some outlier risks. Specifically, the lack of progress in negotiations between the U.S and Iran and rising Treasury yields on the long end of the curve."

Data reveals that Treasury yields of the 3-year benchmark are at fresh highs of 5.273%, while the 10-year yield is 8 basis points up to 4.741%, which is the highest level since January 2025.

"I'm not sure how bullish I can be in the face of rising yields and the potential for a spike in (or higher-for-longer) oil prices in the coming weeks. Higher Treasury yields are economically restrictive, they compress the equity risk premium (stocks become relatively less attractive), which can divert money flow away from stocks are toward higher-yielding, safer investments," said Peterson in his note.

On the bullish side for August, the technical movement in S&P 500 Equal Weight Index (SPXEW) looks sound, and the index continues to methodically climb higher. Also, earnings have been exceptionally strong, and now Amazon and Microsoft have in someway helped calm the concerns around AI economics.

US Stock Market Trading Outlook For August 3 To August 7:

The Schwab analyst believes if yields or oil prices decline next week, this would likely be enough of an excuse for investors to dip buy in the tech space, which would lift overall market sentiment.

Therefore, for next week, he said, "I'm a little torn as to providing a forecast for next week, especially since I don't know which way yields and oil prices are going to trend. I will provide an overall "Cautious" forecast for stocks next week, since I do feel that the potential bearish factors outweigh the potential bullish factors in the near-term. What could challenge my forecast? As I stated above, lower oil prices and yields would likely lift stocks, and the tech/AI complex is still technically oversold, and there could be follow-through upside momentum next week."

Key Data & Earnings To Watch Out Next Week:

Monday, August 3, 2026:

Among economic data, focus will be on Construction Spending and ISM Manufacturing Index who are scheduled to release on August 3.

In terms of earnings, companies that will be in focus are --- CNA Financial Corp. (CNA), CNH Industries NV (CNH), Diamondback Energy Inc. (FANG), Ecopetrol SA (EC), Hess Midstream LP (HESM), Krystal Biotech Inc. (KRYS), Marriott International Inc. (MAR), ONEOK Inc. (OKE), Palantir Technologies Inc. (PLTR), Tyson Foods Inc. (TSN), and Vertex Pharmaceuticals Inc. (VRTX).

Tuesday, August 4, 2026:

Economic data like Business Inventories, Factory Orders, and Trade Balance are scheduled on Tuesday.

Earnings in focus will be of Advanced Micro Devices Inc. (AMD), Amgen Inc. (AMGN), Arista Networks Inc. (ANET), BP PLC (BP), Caterpillar Inc. (CAT), Cummins Inc. (CMI), Duke Energy Corp. (DUK), EOG Resources Inc. (EOG), Gilead Sciences Inc. (GILD) McDonald's Corp. (MCD), Merck & Co. (MRK), Pfizer Inc. (PFE), Space Exploration Technologies Corp. (SPCX), Toyota Motor Corp. (TM)

Tuesday will see heavy movement due to heavyweight stocks quarterly earnings report. SpaceX being one of them.

Wednesday, August 5, 2026:

On Wednesday, data including ADP Employment Change, EIA Crude Oil Inventories, ISM Non-Manufacturing Index, MBA Mortgage Applications Index will be released.

Companies that will declare their earnings include Allstate Corp. (ALL), AppLovin Corp. (APP), Brookfield Asset Management (BAM), CVS Health Corp. (CVS), DoorDash Inc. (DASH), Eli Lilly & co. (LLY), McKesson Corp. (MCK), MercadoLibre Inc. (MELI), Novo Nordisk A/S (NVO), SanDisk Corp. (SNDK), Shopify Inc. (SHOP), Uber Technologies Inc. (UBER), Walt Disney Co. (DIS), and Western Digital Corp. (WDC).

Thursday, August 6, 2026:

Continuing Claims, EIA Natural Gas Inventories, Initial Claims, Productivity-Preliminary, Unit Labor Costs, and Wholesale Inventories data will be released on Thursday.

While earnings in focus are ---- Aflac Inc. (AFL), Airbnb Inc. (ABNB), American International Group Inc. (AIG), Becton Dickinson and Co. (BDX), Cheniere Energy Inc. (LNG), Cloudflare Inc. (NET), ConocoPhillips (COP), Constellation Energy Corp. (CEG), Datadog Inc. (DDOG), Howmet Aerospace Inc. (HWM), Monster Beverage Corp. (MNST), Parker-Hannafin Corp. (PH), Sempra (SRE), Targa Resources Corp. (TRGP)

Friday, August 7, 2026:

Friday will be another crucial trading day as data such as Average Hourly Earnings, Average Workweek, Consumer Credit, Nonfarm Payrolls, and Unemployment Rate will be released.

In case of quarterly earnings, watch out for --- Almonty Industries Inc. (ALM), CG Oncology Inc. (CGON), Flour Corp. (FLR), Hawaiian Electric Industries Inc. (HE), Oklo Inc. (OKLO), Plains All American Pipeline LP (PAA), Plains GP Holdings Inc. (PAGP), PPL Corp. (PPL), Take-Two Interactive Software Inc. (TTWO), and Vistra Corp. (VST).

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