US equity markets are on track to deliver their strongest quarterly performance in six years, with the S&P 500 poised to record its best return since 2020.
The broad-based rally has been sustained by gains across technology and other major sectors, setting a high bar for the start of the second half of 2026.
MarketWatch identifies six potential drivers that could propel stocks higher in August.
These factors build on the momentum that has defined the first half of the year, suggesting that the bull market may have further to run if key conditions align.
The primary catalysts include Federal Reserve policy decisions, the trajectory of inflation trends, crude oil prices, and corporate earnings.
Wall Street’s attention is increasingly focused on how these variables will interact in the coming months.