Daily Economic Briefing — 2026-08-02

Financial Market Trends

• S&P 500 closes higher: On July 31, the S&P 500 rose 52.17 points (0.70%) to finish at 7,489. Amazon’s stock surged following better-than-expected earnings, while Microsoft led the rally in tech stocks.

• Nasdaq up 1.00%: The Nasdaq climbed 251.68 points, reaching 25,373. The tech-heavy index saw the most significant gains on the final trading day of the month.

• Dollar softens, yields stabilize: In global financial markets on July 31, the US dollar showed weakness, while long-term bond yields remained steady.

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riotimesonline.com

Global Economy Briefing — July 31, 2026

Major Economic News

• July industrial activity remains strong: According to the June industrial activity report from the National Data Agency, total industrial production increased by 2.3% month-on-month, led by growth in mining/manufacturing (6.4%) and services (0.7%). Production growth in the automotive and semiconductor sectors was particularly notable.

• Consumption and investment deepen: Retail sales rose by 2.7% month-on-month, driven by passenger cars, communication devices, and computers. Equipment investment also saw a 5.8% month-on-month increase due to higher spending on machinery and transport equipment.

• Economic index rise: The cyclical component of the coincident composite index rose by 0.5 points, and the cyclical component of the leading composite index climbed by 0.9 points, signaling an economic recovery.

Core Industrial Trends

• Automotive industry takes the lead: In the June industrial activity report, the automotive sector served as a key engine for growth in the mining and manufacturing sector. It is being evaluated as the most prominent growth area alongside semiconductors.

• Construction completions increase: Construction completions rose 4.1% month-on-month, bolstered by performance in the architectural sector, reflecting an intensification of construction investment.

• Continued tech rally: In the US market, Amazon and Microsoft led the tech sector with strong earnings, reflecting positive expectations stemming from the expanded use of AI.

Expert Analysis and Outlook

• Limits to the tech rally: Analysis of the July 31 US market close suggests that while strong earnings from Amazon and Microsoft drove indices higher, Apple’s weakness and "soft breadth" during trading hours indicate that the scope of the recovery remains limited.

• Strong industrial activity signals recovery: Domestic industrial activity remains robust, centered on mining/manufacturing and services. With both coincident and leading indices rising, there are strong signals that the trend of economic improvement will continue.