Stock Market Update

[BRIEFING.COM] The major averages have continued padding their gains with the S&P 500 (+0.6%) returning to its opening high while the Nasdaq (+0.9%) is on the same course but still a bit below its best level of the day.

This week has been very quiet on the economic data front, but the turn of the month will bring a busy data slate next week, starting with the July ISM Manufacturing Index (Briefing.com consensus 54.0%; prior 53.3%) on Monday, followed by the July ISM Non-Manufacturing Index (Briefing.com consensus 54.7%; prior 54.0%) on Wednesday, and Preliminary Q2 Productivity (Briefing.com consensus 0.8%; prior 0.3%)/Unit Labor Costs (Briefing.com consensus 1.7%; prior 1.8%) on Thursday. The week will be capped with the closely watched Employment Situation report for July, which is expected to show an acceleration in Nonfarm Payroll growth (Briefing.com consensus 86,000; prior 57,000) and a steady Unemployment Rate (Briefing.com consensus 4.2%; prior 4.2%).

The heavy data slate will keep the spotlight on the Treasury market, where this week's selling has driven the 30-yr yield (5.28%) to a 19-year high and the 10-yr yield (4.75%) to a fresh high for the year, while yields on shorter tenors are also threatening their respective 2026 highs. The Treasury market's response to next week's data could serve as an important guiding beacon for the stock market, as continued selling in Treasuries would pose a headwind to stocks while a bond rebound could help equities recover from a bumpy July.