Stock Market Today, Aug. 7: Markets Rally on Jobs Shock and Atlassian Surges 35%

Stock Market Today, Aug. 7: Markets Rally on Jobs Shock and Atlassian Surges 35%

Emma Newbery, The Motley Fool

Sat, August 8, 2026 at 12:38 AM GMT+3 3 min read

The S&P 500 (SNPINDEX:^GSPC) gained 0.62% to 7,758 to reach a record high. The Nasdaq Composite (NASDAQINDEX:^IXIC) rose 1.30% to 26,691 and the Dow Jones Industrial Average (DJINDICES:^DJI) climbed 0.28% to 54,037 as a surprising contraction in July payrolls fueled interest rate optimism.

Gold prices climbed 2.31% to $4,339.11 as of U.S. market close, and the 10-Year Treasury yield fell 0.03% to 4.65%. Communication services and energy were the only sectors to drop, while industrials and basic materials led the gainers.

Today's biggest moves

Atlassian soared 35%, and Twilio gained 25% on robust quarterly results. Airbnb surged after an earnings beat while Trade Desk tumbled on disappointing earnings. Meanwhile, Papa John's International extended its losses after analysts downgraded the stock following yesterday's guidance cut.

What this means for investors

Today's jobs data gave markets a boost, as surprise figures showed employers cut jobs in July. Nonfarm payrolls fell by 23,000, and unemployment fell to 4.1%. A weaker-than-expected jobs market means the Federal Reserve is more likely to hold interest rates steady in September, making traders less risk-averse.

After yesterday's sell-off in software stocks, today's earnings tell a more nuanced story: Both Atlassian and Twilio posted dramatic gains on the back of impressive earnings. Investors seem to be looking at how artificial intelligence (AI) is impacting demand for each firms' services and rewarding those who are turning the new technology to their advantage.

Meanwhile, the Bank of America bull-and-bear indicator rose from 9.4 to 9.7 — the highest it has been since 2021. Its analysts warn that this extreme bullishness means it is time for investors to pull back from high-risk assets and rotate into more defensive investments.

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Bank of America is an advertising partner of Motley Fool Money. Emma Newbery has positions in Atlassian and The Trade Desk. The Motley Fool has positions in and recommends Airbnb, Atlassian, The Trade Desk, and Twilio. The Motley Fool has a disclosure policy.

Stock Market Today, Aug. 7: Markets Rally on Jobs Shock and Atlassian Surges 35% was originally published by The Motley Fool