EL7.AI
StocksMedium•5 August 2026•
1 min read

S&P 500 Surges 6.48% Weekly as Gamma Squeeze Accelerates Gains

Key Facts

1The S&P 500 index surged 6.48% over the week, driven by equity options trading dynamics.
2A gamma squeeze phenomenon accelerated the index's upward momentum as options positions were hedged.

Amid intense technical movements in US equity markets, the S&P 500 index recorded a robust weekly gain of 6.48%, primarily driven by equity options trading dynamics. According to analyst reports, a technical phenomenon known as a 'gamma squeeze' accelerated the index's upward momentum, as the hedging of options positions created a feedback loop that forced prices higher.

These technical shifts occurred alongside significant monetary decisions, with market data showing the US Federal Reserve held interest rates at 3.75% on July 29, 2026.

Looking ahead, traders are monitoring the impact of macroeconomic data on the sustainability of this technical momentum. Following the release of Eurozone GDP growth at 1% and the Bank of England's decision to hold rates at 3.75% on July 30, 2026, focus remains on market stability once the gamma squeeze effects subside and how global monetary policies influence risk appetite.