The Dow Jones Industrial Average closed at a record high after jumping 3% last week, joined by the S&P 500 and Nasdaq as falling oil prices and Treasury yields fueled a broad rally. Berkshire Hathaway's Q2 earnings beat and a week of AI hardware earnings add to the backdrop as futures reopen Sunday evening.
The Dow Jones Industrial Average jumped 3% last week and closed at a record high. The S&P 500 gained 3.6%, also hitting a fresh record, while the Nasdaq composite surged 5.2% and reclaimed its 50-day moving average.
The small-cap Russell 2000 rose 3.5%, sitting just below its own all-time high. U.S. crude oil futures tumbled 7.7% to $78.18 a barrel for the week. The 10-year Treasury yield fell nearly nine basis points to 4.66%.
Fed Bets Shift, Iran Talks Continue
After Friday's weak jobs report, markets are now leaning against a September rate hike. The CPI inflation report is due Wednesday, with producer price data following Thursday.
Dow Jones futures, along with S&P 500 and Nasdaq-100 futures, open Sunday at 6 p.m. ET. An Iran-Oman deal on the Strait of Hormuz remains close, though Tehran says the U.S. must meet a series of demands before any opening, and Iranian-backed Houthi rebels claimed to have struck a Saudi oil refinery.
Berkshire Earnings Add To Sentiment
Warren Buffett's Berkshire Hathaway reported Q2 operating earnings of $12.98 billion, up 16% from a year earlier. Revenue climbed 10% to $101.8 billion, and both figures beat expectations.
The conglomerate bought back $4.5 billion of its own stock, compared with $235 million it repurchased in Q1. It purchased a net $19.8 billion worth of equities, ending a 14-quarter selling streak. Cash holdings fell to $365.5 billion from $380 billion in the prior quarter.
Key Earnings Ahead
Cisco Systems, Lumentum Holdings, Applied Materials, Coherent and Nebius are among the AI hardware companies reporting this week, alongside retailers Ross Stores and Tapestry and several aerospace names.
Source: Investor's Business Daily
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