US equities opened August firmer, led by technology. The Nasdaq was up more than 2% and the S&P 500 gained 1.6%, with Oracle rising alongside Meta, which climbed 6.5%. Microsoft and Alphabet each added more than 5%, while Amazon rose more than 4% to a record $3 trillion valuation. On Monday alone, the S&P 500 added $1 trillion in market capitalisation. SpaceX gained 1.8% ahead of its first earnings report since listing on the Nasdaq in June, after hitting a record low on Friday.
Market Drivers and Valuation Trends
Oil was a near-term tailwind, as Brent crude futures fell 4% to around $83.50. Equity support also came from valuation, with the S&P 500’s forward P/E relative to the MSCI World Index now below its long-term average, following six weeks of softer performance.
Earnings Growth and Sector Performance
Earnings have been strong: blended growth is 47.4% year on year, the fastest since Q2 2021, and even excluding Alphabet and Amazon it is 28.8%. About 86% of companies have beaten estimates, and 10 of 11 S&P 500 sectors have reported year-on-year earnings growth, while key risks cited include Friday payrolls data and potential oil-price shocks.
