US Stock Market Trading Outlook For August 10-14: What's Next After Dow Jones & Nasdaq's 1300 Pts Rally?

The US stock market is expected to trade moderately bullish during the trading week from August 10th to August 14th after the Dow Jones, Nasdaq, and S&P 500 held strong gains last week despite a sharp decline in US nonfarm payroll data and unemployment rate. Despite US-Iran geopolitical risks unraveling and August being a bearish month, both macro and internal factors are in favor of bulls for Wall Street next week. However, overbuying could lead to consolidation in the S&P 500 in the trading week ahead. The US CPI and PPI will be major reports to watch out for next week. While corporate earnings will continue to give stock-specific actions.

From August 3rd to 7th, the Dow Jones and Nasdaq Composite skyrocketed at least 1,300 points in terms of weekly performance, while the S&P 500 index soared over 250 points.

US Stock Market Weekly Performance:

The Dow Jones Industrial Average ended last week at 54,036.93 with a strong weekly gain of 1,277.87 points or 2.42%, outperforming other indices. Dow Jones had touched a new all-time high of 54,744.33 during the week before correcting.

Meanwhile, the Nasdaq Composite index zoomed by 1,237.95 points or 4.9% in the week to close at 26,690.62. Nasdaq was the only index that resisted hitting new record highs, but in percentage terms, the index outperformed. Nasdaq is now close to its all-time high of 27,190.21.

In case of S&P 500, the index rose by 252.86 points or 3.4% to close the week at 7,757.64. The index also touched a new all-time high of 7,793.68 before the jobs report.

On Friday, SpaceX surged 15.8%, extending Thursday's rally after Argus Research upgraded the stock to "Buy," citing rapid returns on its AI infrastructure investments. Palantir jumped 10.3%, extending gains following strong second-quarter results and a higher 2026 outlook. Meanwhile, Sandisk and Western Digital fell 3.7% and 3.8%, respectively, while Berkshire Hathaway slipped ahead of its earnings report, as per Trading Economics.

As per Joe Mazzola, a Charles Schwab's Head Trading & Derivatives Strategist, the economy unexpectedly lost 23,000 jobs last month, according to today's U.S. nonfarm payrolls report. It was the first monthly decline since February and could ignite concerns about the pace of economic growth, though unemployment fell to 4.1%. The government also downwardly revised combined May and June jobs growth by 103,000. Analysts had expected jobs growth of 86,000 and unemployment steady at 4.2%. Major indexes, which climbed before the report, initially held gains while Treasury yields declined as traders dialed back rate hike odds.

Why Fed Could Hold Rates Again In September?

The report "should give the Fed more comfort in their decision to hold rates steady last week," said Collin Martin, head of fixed income research and strategy at the Schwab Center for Financial Research (SCFR).

Martin added that the Federal Reserve's decision gets more complicated when inflation is high but the labor market might be softening. He further noted that the central bank will likely consider whether the economy can handle tighter policy when deciding if and when to hike.

US Stock Market Trading Outlook For August 10-14:

"I am providing an overall "Moderately Bullish" forecast for stocks next week. What could challenge my forecast? Since we are overbought on a very near-term basis, its possible we consolidate next week, or it's even possible that the SPX does a technical "check back ", which means the index would go back to test the prior resistance level around 7,600," said Nathan Peterson, Director of Derivatives Research and Strategy for the Schwab Center for Financial Research.

For the upcoming trading week, US market sentiment will face US nflation reports (CPI/PPI) along with several major AI companies earnings report.

From a technical perspective, Peterson believes that investors have overbought on a very-near term basis given the strong week, but the momentum is to the upside.

He added, "The "pain trade" is also higher, given that some performance chasing may still be lurking underneath the surface. Yes, the Iran war is a wild card, and yes August is not a strong month for stocks from a seasonal factor, but I believe the outlook favors the bulls due to a) bullish technicals/momentum b) potential performance chasing and c) potential short covering."

Key Economic Reports & Earnings To Watch Out Next Week:

Monday, August 10, 2026:

No major economic reports are scheduled on Monday. However, companies like Aao(AAON), AECOM (ACM), Apogee Therapeutics (APGE), AST SpaceMobile (ASTS), Axsome Therapeutics (AXSM), Barrick Mining Corp. (B), California Resources Corp. (CRC), Camtek (CAMT), Embraer SA (EMBJ), Ferguson Enterprises (FERG), Rocket Lab Corp. (RKLB), Simon Property Group (SPG), and YPF SA (YPF) will declare their quarterly results on August 10.

Tuesday, August 11, 2026:

Existing home sales data will be announced on August 11.

Among major earnings to watch out on Tuesday include that of Aramark (ARMK), Cardinal Health (CAH), CAVA Group (CAVA), CoreWeave (CRWV), Elbit Systems (ESLT), Franco-Nevada Corp. (FNV), Hims & Hers Health (HIMS), Lumentum Holdings (LITE), Middleby Corp. (MIDD), On Holding (ONON), Quantinuum (QNT), Sea Ltd. (SE), Super Micro Computer (SMCI), and Venture Global (VG).

Wednesday, August 12, 2026:

Wednesday will be pivotal as US will release its Consumer Price Index (CPI), EIA Crude Oil Inventories, MBA Mortgage Applications Index, and Treasury Budget data.

For corporate earnings, watch out for companies like Amcor PLC (AMCR), Brinker International (EAT), CAE Inc. (CAE), Cerebras Systems (CBRS), Cisco Systems (CSCO), Coherent Corp. (COHR), EnerSys (ENS), Korea Electric Power Corp. (KEP), Navan Inc. (NAVN), Nebius Group (NBIS), Pan American Silver Corp. (PAAS), and Performance Food Group (PFGC).

Thursday, August 13, 2026:

Thursday will be another key day as economic data like Producer Price Index (PPI), Continuing Claims, EIA Natural Gas Inventories, and Initial Claims will be released.

Both CPI and PPI are key indicators for Fed to decide their future rates.

Friday, August 14, 2026:

On this last trading day of the week, data like Business Inventories, and University of Michigan Consumer Sentiment will be released.

Earnings of companies like Anteris Technologies Global Corp. (AVR), Arrivent Biopharma (AVBP), ASP Isotopes Inc. (ASPI), Avalyn Pharma (AVLN), Hemab Therapeutics Holdings (COAG), RLX Technology (RLX), and United State Antimony Corp. (UAMY) are also scheduled.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.