Stock Market Today: S&P 500 Futures Gain Amid Iran Sanction Threats; Ross Stores Rallies 9% on Strong Q2 Beat 

S&P 500 futures climbed 0.2% on Friday, August 21, 2026, following Thursday’s decline. Dow futures gained 65 points, while Nasdaq 100 futures advanced 0.4%. Treasury Secretary Scott Bessent warned the US will impose “the toughest sanctions in history” on Iran. Ross Stores shares jumped 7.92% in after-hours trading on a strong second-quarter earnings beat.

Why S&P 500 Futures Turned Higher Today

Bessent’s Iran Sanctions Warning Adds Pressure

Bessent’s comments follow President Trump’s earlier threat of “economic warfare” against nations aiding Tehran. Brent crude traded near $93.24 a barrel Friday, pulling back slightly despite the sanctions rhetoric. Investors weighed favorable domestic conditions against escalating Middle East tensions heading into the weekend.

Bond Yields Resumed Their Climb Thursday

US equities finished lower Thursday as sovereign bond yields resumed climbing after a sharp decline earlier in the week. The Treasury’s bond buyback announcement had briefly calmed markets Wednesday. That relief faded quickly as the 30-year yield approached its highest level in nearly two decades again.

Ross Stores Delivers a Blowout Second Quarter

Sales and Earnings Crush Wall Street Estimates

Ross Stores reported second-quarter diluted EPS of $2.66, smashing the $1.94 consensus estimate. Revenue climbed 13% year-over-year to $6.3 billion, beating forecasts of $6.15 billion. Comparable store sales jumped 10%, marking the second consecutive quarter of double-digit comps for the off-price retailer.

Tariff Refunds Boosted the Headline Numbers

About $0.60 of Ross’s EPS beat came from one-time tariff refunds under the International Emergency Economic Powers Act. Excluding that benefit, adjusted EPS still reached roughly $2.06. Net income rose to $851 million from $508 million a year earlier, reflecting genuinely stronger underlying demand.

Ross Stores Raises Full-Year Guidance Sharply

New EPS Targets Signal Confidence

Ross raised full-year 2026 EPS guidance to 8.61-8.77, up from $6.61 a year earlier. Third-quarter comparable sales are expected to rise 6% to 7%, with EPS between $1.75 and $1.83. Fourth-quarter guidance calls for 4% to 5% comp growth and EPS of $2.17 to $2.26.

Store Expansion Plans Also Accelerated

Ross now plans to open 115 new stores in fiscal 2026, up from its prior 110-location target. The company repurchased 1.4 million shares for $319 million during the quarter. CEO Jim Conroy cited building momentum entering the fall season despite tougher year-over-year comparisons ahead.

Other Stocks Moving in Friday’s Session

Mixed Reactions Across Consumer Names

Advance Auto Parts rose 0.57% after reaffirming full-year sales and margin guidance. Flowers Foods fell 4.37% after missing both earnings and sales estimates for the quarter. OSI Systems dropped 14.48% following mixed fourth-quarter results and weak fiscal 2027 sales guidance.

Energy and Defense Names Stay in Focus

Rising Middle East tensions kept energy stocks like Chevron and Occidental Petroleum in sharp focus Friday. Defense contractors including Lockheed Martin often see renewed investor interest during periods of escalating geopolitical risk. Markets remain sensitive to any fresh developments out of the Strait of Hormuz region.

Conclusion

Ross Stores’ blowout quarter shows genuine strength in off-price retail demand this year. Iran sanction threats keep geopolitical risk elevated heading into the weekend. Investors should watch oil prices and bond yields closely for near-term market direction.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.