The Dow Jones Industrial Average climbed 1.75% during yesterday's trading session, marking its strongest single-day gain in two months and closing at a new all-time high near 54,100 points.
As a result, the index has gained more than 3% since the beginning of the week, making it the second-best weekly performance of the year so far. With three trading sessions still remaining this week, it has the potential to become the strongest weekly performance of 2026.
This rally has also pushed the Dow Jones back above all of its key moving averages, including the short-, medium-, and long-term averages.

The main drivers behind this rally include:

• Strong second-quarter corporate earnings across multiple sectors, reinforcing the resilience of the US earnings season.
  
• These solid earnings have helped ease concerns surrounding the artificial intelligence sector, particularly following strong financial reports from companies such as SpaceX, AMD, and HSBC.
  
• Lower oil prices, combined with easing geopolitical tensions in the Middle East and growing expectations for the restoration of safe navigation through the Strait of Hormuz.
  
• Positive technical factors, as the index successfully broke above key resistance levels that had capped previous rally attempts.
  

Looking ahead, investors are awaiting this week's US labor market data, which could provide further upside momentum for equities if the figures exceed expectations.

Current forecasts suggest that the US economy added approximately 85,000 jobs in July, compared with 57,000 jobs in June.

The key question now is: Can US equity indices deliver their strongest weekly performance of the year?