The Dow Jones Industrial Average climbed 3% last week to a record high, joining gains across the S&P 500 and Nasdaq as falling oil prices and Treasury yields fueled a broad rally. Dow futures resume trading Sunday evening with Iran-related developments and a fresh round of earnings, including Berkshire Hathaway's results and upcoming reports from Cisco and Applied Materials, in focus.
The Dow Jones Industrial Average shot up 3% last week, closing at a record high alongside the S&P 500. Falling oil prices and Treasury yields drove the advance, and Dow futures were set to open at 6 p.m. ET on Sunday alongside S&P 500 and Nasdaq-100 futures, with Iran news in focus.
Rally Broadens Across Indices
The S&P 500 leapt 3.6% last week, also hitting a record high.
Meanwhile, the Nasdaq composite surged 5.2%, reclaiming its 50-day line and closing in on its early-June peak. The small-cap Russell 2000 gained 3.5%, just below its all-time high, while the Invesco S&P 500 Equal Weight ETF rose 2.4% and hit a record Wednesday.
Yields and Oil Drive the Move
The 10-year Treasury yield fell nearly nine basis points to 4.66%. After a weak jobs report on Friday, markets are now leaning against a September rate hike, with the CPI inflation report due Wednesday and PPI data the following day.
U.S. crude oil futures tumbled 7.7% to $78.18 a barrel for the week, as markets bet on a new Iran deal that would open the Strait of Hormuz.
Berkshire Earnings Add to the Backdrop
Berkshire Hathaway reported Q2 operating earnings of $12.98 billion, up 16% from a year earlier, while revenue climbed 10% to $101.8 billion, beating views on both counts. The company bought back $4.5 billion of its own stock, up from $235 million in Q1, and purchased a net $20 billion worth of equities, ending a 14-quarter slide in buying. Its cash holdings stood at $365.5 billion, down from $380 billion in Q1.
Cisco Systems, Lumentum Holdings, Applied Materials, Coherent and Nebius are among the AI hardware names due to report earnings this week, alongside Ross Stores and Tapestry.
Source: Investor's Business Daily
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