Market Close: Stock Rally Fades, Job Growth Weakens, Strong Earnings Boost Eli Lilly 8-5-2026
Speakers
Sylvia Jablonski
— Chief Investment Officer, Defiance ETFs
Neil Kashkari
— Minneapolis Fed President
Peter Schacknow
— Anchor/Reporter, CNBC
Summary
U.S. stocks ended mixed with the Dow hitting a record while the S&P 500 set an intraday high. Minneapolis Fed President Neil Kashkari dissented on rates, arguing policy should tighten. Defiance ETFs CIO Sylvia Jablonsky is bullish on AI hyperscalers like Oracle, Microsoft, Amazon, and Google due to strong earnings and AI monetization.
- Dow closed at record 54,349, S&P 500 set intraday record but ended lower
- Optimism over Strait of Hormuz reopening and strong corporate earnings supported markets
- Minneapolis Fed's Kashkari argued monetary policy is not restrictive enough, urged gradual rate hikes
- ADP private payrolls miss at 44,000 vs. expectations
- AI hyperscalers Oracle, Microsoft, Amazon, Google highlighted as winners by Sylvia Jablonsky
- Alphabet fell 4% on AI chief Jeff Dean's departure
- Eli Lilly rose 5% on strong earnings from Zepbound and diabetes drugs
Ideas
AI hyperscalers win monetizing AI, earnings strong.
AI hyperscalers like Oracle, Microsoft, Amazon, and Google are winning because they are spending heavily on AI and monetizing it, driving very strong earnings growth with 86% of companies beating EPS and 47% year-over-year growth.
