Nasdaq & S&P 500 Surge as Markets Stage a Comeback – Bulls Back in Charge?

Wall Street roars back to life as the Nasdaq and S&P 500 claw their way into the green. Is this the rebound traders have been waiting for—or just another headfake before the next plunge?

Tech leads the charge—again. No surprises there. The usual suspects (FAANGs, chipmakers, and your favorite overvalued AI startups) are dragging the indices higher while Main Street scratches its head.

Short sellers? Getting squeezed. Bulls? Flexing. And your portfolio? Probably still underwater unless you’ve been riding crypto’s volatility instead. Classic case of 'stocks go up, but your picks don’t.'

One cynical take: If this rally holds, expect CNBC to declare 'the correction is over' right before the next 10% drop. Markets giveth, and algorithms taketh away.

Corporate earnings

Wall Street benefited from key earnings reports, led by positive results from top tech companies. The dip on Friday looked to dampen sentiment before markets bounced on Monday, and investors may be eyeing further strength as the earnings season picks up again. 

Palantir shares rose 6% after the defense technology company’s earnings report showed revenue exceeded $1 billion. Investors will want the same for AMD, Rivian, McDonald’s and Disney. AMD and Rivian report on Tuesday, while McDonald’s and Disney will release their earnings reports on Wednesday Aug. 6. 

Tariffs, Fed

In addition to earnings, tariff headlines remain a major driver of sentiment. While stocks have remained largely resilient since the initial negative reaction in April, ongoing developments continue to influence market outlook.

Meanwhile, TRUMP told CNBC in an interview that he has narrowed his list of potential Federal Reserve chair nominees to four. However, Treasury Secretary Scott Bessent is not among the candidates.

Fed Chair Jerome Powell, whose term ends in May 2026, has faced sharp criticism over the central bank’s interest rate policy.