Nasdaq Gains $3.5 Trillion in 4 Days, Palantir Surges Nearly 40% Leading Tech Rally, Earnings Drive Biggest Weekly Move in US Stocks

US technology stocks maintained their strength this week, with corporate earnings emerging as the core factor shaping Nasdaq market trends. The Nasdaq Composite Index rose 1.30% on Friday, lifted by weaker-than-expected US non-farm employment data, moving in tandem with broader market gains. The week's focus centered on tech company earnings, with Palantir Technologies (PLTR) surging nearly 40% after reporting strong Q2 results, becoming one of the Nasdaq's top performers.

The Nasdaq's upward momentum wasn't limited to Friday. Early in the week, markets were boosted by positive signals from US Treasury Secretary Scott Bessent, who indicated that the US and Iran might reach an agreement within days to reopen the Strait of Hormuz, easing concerns over energy supply and geopolitical risks, further fueling demand for risk assets.

Meanwhile, the Nasdaq 100 Index added approximately $3.5 trillion in market capitalization over four trading days from July 30 to August 4, marking the strongest four-day rally since April 2025. Market analysts attribute this tech stock rebound primarily to a series of better-than-expected earnings reports from major technology firms.

Among individual stocks, Palantir stood out as the week's biggest spotlight. Following its Q2 earnings release, investors responded enthusiastically to its artificial intelligence (AI) business and future growth prospects, driving its share price up 39.78% for the week, leading all major tech stocks.

Following Palantir, Shopify (SHOP) also gained 29.38% this week, buoyed by strong earnings and optimistic business outlook. Both companies emerged as key beneficiaries of the earnings-driven rally, highlighting investor appetite for firms with exposure to AI, cloud computing, and digital commerce growth themes.

Rocket Lab (RKLB) rose 27.53%, ranking among the top gainers. As market interest in space industry, satellite technology, and launch services continues, Rocket Lab's stock strengthened notably amid rising risk appetite.

AI cloud infrastructure provider CoreWeave (CRWV) also delivered strong performance, with its stock up 26.33% for the week. Sustained market focus on AI data centers, GPU computing, and cloud infrastructure demand has positioned CoreWeave as a major beneficiary of the AI capital expenditure boom.

Lumentum Holdings (LITE) climbed 24.68%, joining the list of top weekly gainers. Investor attention to optical communications, data center networking, and AI infrastructure-related demand continues to support stock prices of related companies.

However, not all tech and growth stocks benefited from this earnings-driven rally. Western Digital (WDC) emerged as the week's biggest loser, with its stock falling 20.29%. Despite reporting Q2 results above expectations, market interpretation of its performance was negative.

Analysts noted that after Western Digital's earnings release, investors began comparing its results with peer Seagate Technology (STX), reassessing both companies' competitiveness, profitability, and future outlook in the storage market, ultimately leading to significant selling pressure on Western Digital's shares.

Honeywell Aerospace (HONA) declined 18.49%, becoming the second-largest decliner. The company's Q2 earnings failed to meet market expectations, and rising investor concerns over its performance and future growth prospects led to a sharp drop in its stock price.

Datadog (DDOG) fell 12.70%, and AppLovin (APP) dropped 12.40%, both affected by earnings results and market valuation reassessments. While the market remains highly enthusiastic about AI and tech growth themes, as stock prices and valuations rise, investors are increasingly focused on whether companies can deliver sustained earnings growth to justify high valuations.

In the energy sector, Diamondback Energy (FANG) fell 7.35%, becoming one of the major decliners. Against the backdrop of a strong tech stock rebound, energy stocks lacked momentum, and ongoing concerns over Middle East tensions, energy supply, and oil price movements caused energy stocks to underperform compared to tech and AI-related equities.

Overall, this week's Nasdaq market exhibited a clear 'earnings-driven' pattern. Stocks with earnings exceeding expectations attracted significant capital inflows, with Palantir, Shopify, Rocket Lab, CoreWeave, and Lumentum Holdings all posting weekly gains exceeding 20%. Conversely, companies with earnings or market reception below expectations faced sharp corrections, with Western Digital and Honeywell Aerospace seeing declines approaching or exceeding 20%.

The Nasdaq Composite's 1.30% rise on Friday also reflects sustained strong risk appetite. Previously, the Nasdaq 100 added about $3.5 trillion in market value over just four trading days from July 30 to August 4, marking the strongest four-day rally since April 2025, underscoring that large-cap tech stocks remain the primary engine driving rapid market cap expansion in US equities.

However, the market's recent sharp divergence reflects rising investor scrutiny of earnings quality. With tech stocks trading at elevated valuations, merely meeting expectations may no longer be sufficient to sustain stock prices; companies must demonstrate stronger revenue, profit, or forward-looking guidance to maintain momentum.

Especially as AI investment remains a dominant market theme, the strong performance of Palantir and CoreWeave shows that AI-related growth narratives still hold powerful market appeal. Yet, the sharp decline in Western Digital's stock serves as a reminder that when market expectations are already priced into valuations, even minor discrepancies in earnings details or peer comparisons can trigger severe corrections.

This week's performance indicates that the Nasdaq remains dominated by tech and AI-related themes, but the market is gradually shifting from chasing growth stories to scrutinizing whether companies can validate high valuations with actual earnings. As more firms report quarterly results, earnings outcomes, guidance, and management commentary on future demand are expected to remain key factors shaping the next phase of Nasdaq's trajectory.

Top Weekly Performers:

- Palantir Technologies (PLTR): +39.78% - Shopify (SHOP): +29.38% - Rocket Lab (RKLB): +27.53% - CoreWeave (CRWV): +26.33% - Lumentum Holdings (LITE): +24.68% - Western Digital (WDC): -20.29% - Honeywell Aerospace (HONA): -18.49% - Datadog (DDOG): -12.70% - AppLovin (APP): -12.40% - Diamondback Energy (FANG): -7.35%