U.S. Stocks Rally to End Tumultuous Week as S&P 500, Dow Gain; Ross Stores Shines on Earnings Boost

U.S. stock markets ended the week on a positive note on Friday, August 21, 2026, offering relief to investors after a choppy stretch of trading.

Broad Market Gains Lift S&P 500, Dow, Nasdaq

The S&P 500 rose 33.21 points, or 0.43%, to close at 7,674.37. The Dow Jones Industrial Average surged 517.80 points, or 0.98%, to 53,277.01. The Nasdaq Composite also climbed, up 113.29 points, or 0.44%, to finish at 26,180.45. Despite the gains, all three indexes posted losses for the week, with the Dow suffering its second straight weekly decline—the steepest since mid‑March—and both the S&P 500 and Nasdaq snapping three‑week winning streaks.

The rally was supported by fresh economic data showing the strongest growth in U.S. services sector activity in nearly two years, which bolstered hopes for corporate profit growth. However, market sentiment remained cautious due to continued volatility in government bond yields and geopolitical tensions, particularly related to developments in the Middle East.

Ross Stores Climbs on Blowout Q2 Results and Raised Outlook

Among individual stocks, off‑price retailer Ross Stores delivered a standout performance. Its shares soared—rising approximately 7% in extended trading and continuing higher during intraday trading—after reporting second‑quarter results that significantly exceeded expectations. Ross posted earnings per share of $2.66, easily beating the roughly $1.94 Wall Street estimate, and reported a 13% increase in revenue to around $6.3 billion and 10% comparable‑store sales growth. The performance was credited to strong customer traffic, improved margins, and a one‑time $253 million tariff refund boosting EPS by about $0.60.

Management raised full‑year earnings guidance to a range of $8.61 to $8.77 and increased its projected store openings for fiscal 2026 to 115 locations, up from 110. Optimism among investors reflected the company’s sustained momentum amid a challenging retail landscape, emphasizing its ability to attract value‑seekers even as more traditional retailers falter.

Investor Takeaway

The week’s market rebound offers a measure of respite, but the broader backdrop—marked by bond market turbulence, inflationary concerns, and geopolitical uncertainty—signals that market headwinds remain. The strength seen in services activity provides a foundation for corporate earnings momentum, yet elevated yields and macro risks could continue to cap upside.

Meanwhile, Ross Stores’ robust results underscore the resilience of the off‑price retail segment. Consumers appear increasingly price‑conscious, but demand remains firm—sending a hopeful signal for firms positioned to capture value‑driven traffic. Investors will likely watch closely for earnings from other retailers and value‑focused chains in the coming weeks to gauge whether this trend holds.