Tech Stocks Gain on SpaceX, Middle East Optimism Lifts Market Sentiment Before ADP Report

Financial markets have been lifted by a breeze of optimism at the start of August. Better-than-expected results from SpaceX have energized the U.S. technology sector and beyond, while somewhat more reassuring news from the Middle East has eased the rally in energy markets and helped shift investor sentiment back toward a risk-on environment.

Caution remains warranted, however, as August is traditionally characterized by lower trading volumes and wider market swings. To validate the recent improvement, markets are now focused on today’s U.S. ADP employment data for June 2026, as well as a series of key corporate earnings reports due throughout the day. Futures point to a positive opening for both European and U.S. markets.

Financial markets sentiment

Financial markets are showing moderately positive sentiment today. Our intermarket analysis currently indicates a Market Health Score of 76/100, reflecting a positive overall backdrop.

Looking at our intermarket dashboards, the main focus remains on the S&P 500/Nasdaq ratio, which has been significantly influenced by the SpaceX effect. In just one trading session, the ratio has fallen back below its long-term moving average while finding support at its medium-term moving average. The coming days will tell us whether this move is confirmed. A renewed risk-on environment would certainly favor technology stocks, but it is still far too early to draw firm conclusions. Moreover, Nvidia’s earnings—the most influential among the Magnificent Seven in terms of market impact—will not be released until the end of the month.

The Dow/Gold ratio remains broadly unchanged, while the S&P 500/VIX ratio has failed to post further gains, suggesting that investors are still maintaining a cautious stance. Meanwhile, the Commodities/Bonds ratio is testing its medium-term moving average support for the second consecutive time, with developments in the Middle East fueling hopes for renewed negotiations between the United States and Iran.

Asset classes have reacted positively to the latest news, with both global equities and global bonds moving higher. Global bonds are attempting to reclaim their long-term moving average, while global equities are trying to break out of their short-term sideways trend. Commodities, on the other hand, have broken below their medium-term moving average.

Our Market Weather Map provides a clear snapshot of current conditions. Equities are approaching the 60-point threshold, while the U.S. technology sector has surged by 13 points in a single day. The Growth style has gained 14 points, suggesting that the rally extends beyond the SpaceX effect alone. Cryptocurrencies have not participated in the wave of optimism and remain well below the 50-point mark, while the U.S. dollar, gold, and oil are broadly unchanged.

Global Futures – Pre-Market Sentiment

Pre-Market Futures: Global futures point to a risk-on sentiment, posting an average gain of +0.63%. U.S. futures are slightly positive (+0.30%), European futures are modestly higher (+0.47%), while Asian markets are leading the advance with a solid gain of +0.64%.

Macroeconomic calendar

On the macroeconomic front, today’s calendar features the final July 2026 PMI readings for the services sector and the composite index, the Reserve Bank of India’s policy decision, the July 2026 ISM Services PMI, and the June 2026 ADP Employment Report.

On the earnings front, investors will be watching results from Eli Lilly, Novo Nordisk, Uber, Motorola, Walt Disney, SanDisk, and Western Digital.

ACTIVATE YOUR 14-DAY FREE TRIAL NOW. CLICK HERE

Already a subscriber? Login here

NOTES AND WARNINGS

Data compiled by kbmeter.com. Analysis date: 5 August 2026 - 8:05 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.