LPL Research provides its Weekly Market Performance for the week of August 24, 2026. U.S. stocks printed a moderate weekly advance, supported by strong earnings and revenue guidance from a high-profile chipmaker and software earnings. However, markets also digested a fresh vow from Federal Reserve (Fed) Chairman Kevin Warsh to fight inflation, which bolstered rate hike expectations and pushed Treasury yields higher — spurring cautious Friday trading. International markets were mixed, with improving economic sentiment supporting Europe and tech-driven gains lifting parts of Asia. Meanwhile, Treasuries edged higher despite ongoing debt and deficit concerns and a post-Jackson hole slide.
Stock Index Performance
| Index | Week-Ending | One Month | Year to Date |
| S&P 500 | 0.45% | 3.77% | 12.61% |
| Dow Jones Industrial | 0.49% | 1.50% | 11.39% |
| Nasdaq Composite | 0.83% | 6.12% | 13.58% |
| Russell 2000 | -1.33% | 0.81% | 19.97% |
| MSCI EAFE | -0.57% | 3.60% | 12.07% |
| MSCI EM | -0.04% | 7.58% | 22.63% |
S&P 500 Index Sectors
| Sector | Week-Ending | One Month | Year to Date |
| Materials | -0.66% | 2.62% | 16.20% |
| Utilities | -0.38% | -6.71% | -0.61% |
| Industrials | -1.70% | -2.99% | 14.05% |
| Consumer Staples | -0.61% | -2.90% | 8.17% |
| Real Estate | -1.05% | -3.08% | 11.24% |
| Health Care | -2.23% | 2.05% | 10.08% |
| Financials | 1.05% | 0.79% | 5.87% |
| Consumer Discretionary | -0.35% | 6.71% | -0.08% |
| Information Technology | 1.93% | 8.19% | 22.24% |
| Communication Services | 1.46% | 2.47% | 1.23% |
| Energy | -2.26% | 7.40% | 38.04% |
Fixed Income and Commodities
| Indexes and Commodities | Week-Ending | One Month | Year to Date |
| Bloomberg U.S. Aggregate | 0.46% | 0.22% | 0.11% |
| Bloomberg Credit | 0.62% | 0.32% | -0.01% |
| Bloomberg Munis | -0.06% | -0.17% | 0.58% |
| Bloomberg High Yield | 0.36% | 1.13% | 2.81% |
| Oil | -4.27% | 5.15% | 45.14% |
| Natural Gas | 4.26% | 8.60% | -21.57% |
| Gold | -3.26% | 10.51% | 3.10% |
| Silver | -3.86% | 16.05% | -7.44% |
Source: LPL Research, Bloomberg 8/28/26 @ 2:40 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.
U.S. and International Equities
U.S. Equities: Stocks gained ground over the last full trading week of August, leaving major averages well on their way to snap a two-month losing streak. The S&P 500 rose over the back half of what was otherwise a relatively rangebound start to the week as markets geared up for earnings results from chipmaking giant NVIDIA (NVDA) and the Fed’s annual Jackson Hole Economic Symposium. Regarding the former, the artificial intelligence (AI) bellwether appeared to pass the latest test for the AI theme with stronger-than-expected revenue guidance bolstering confidence that AI-related spending has more room to run. Software was another earnings bright spot, pushing back against the AI disruption narrative following strong outlooks from Salesforce (CRM) and CrowdStrike (CRWD).
On the macro front, broadly in-line inflation figures did little to move markets on Wednesday, leaving macro focus on Fed Chairman Warsh’s speech in Jackson Hole on Friday. The central bank leader vowed to fight inflation, soothing worries of the central bank’s willingness to tackle price pressures — but risk appetite was ultimately dented as Treasury yields rose sharply on bolstered rate hike expectations.
International Equities: Overseas, European equities ended roughly where they started, measured by a nearly flat week for the STOXX 600. As investors moved past the tailwind of a strong earnings season, lower crude prices buoyed the energy-sensitive region, as well as some economic optimism. Survey results from IFO and GfK on German economic and business sentiment — Europe’s largest economy — broadly bested consensus forecasts ahead of a better-than-expected economic confidence print for the Eurozone on Friday. Simultaneously, France lagged as political stability concerns resurfaced as presidential candidates began publicly delivering their policy outlines ahead of next spring’s rapidly approaching election.
Asian stocks capped the week with mixed results. Japan’s Nikkei rose on the back of Friday’s gains as tech shares ran with a positive handoff from New York despite an initially muted reaction to NVDA’s results. However, the TOPIX outperformed on strength in bank shares amid ongoing Bank of Japan rate hike discussions following hotter-than-expected inflation data. Greater China ended mixed amid headline noise over Chinese retaliation should the U.S. impose fresh tariffs over Beijing’s links to Iran, and some dovish-leaning stories around U.S.-China sanctions late in the week. South Korea underperformed as markets digested Thursday’s Bank of Korea rate hike aimed at combating AI-boom driven inflation. Korean won strength weighed on exporters, overshadowing strong demand signals from NVDA’s earnings for KOSPI-heavyweights SK Hynix and Samsung.
Fixed Income, Currency, and Commodity Markets
Fixed Income: Core bonds, as measured by the Bloomberg Aggregate Index (Agg), traded slightly higher despite paring gains Friday afternoon. The short-end of the Treasury yield curve led the move higher in rates to end the week, flattening the curve as traders moved to price in a rate hike by the end of the year after Fed Chair Warsh regained some credibility with his promise to tame inflation. More broadly, last week’s noise continued to drive the Treasury market narrative this week as the debt and deficit concerns remained top of mind. Combine the highest U.S. 30-year yield since 2007 with multi-decade highs in select international markets with higher oil, a deficit tracking north of $2 trillion, and a new Fed chair at his first Jackson Hole Symposium, and you get the full Monty of bond vigilantes, a buyer’s strike, and debt spirals.
But amid those loud noises, Treasury yields have stayed relatively calm, interest rate volatility fell this week, and market-implied inflation expectations remain rangebound. Moreover, this week’s Treasury auctions of two-, five-, and seven-year securities were, for all intents and purposes, successful during peak hysteria. A buyer’s strike does not look like this, suggesting that the market is not refusing to buy Treasuries, but is refusing to buy them at the wrong price — which is what markets are for. So, consider this a healthy normalization, not a crisis. Not to downplay the risks, they are real, but so far, the bond market is handling them in an orderly fashion.
Commodities and Currencies: The broader commodity complex edged lower Friday after clawing its way back toward the flatline following mid-week losses. West Texas Intermediate (WTI) crude dropped this week as Mideast regional crude exports showed signs of recovering off March lows, while traders also digested a revenue sharing framework agreed upon by Iran and Oman (although Tehran stated this does not imply a reopening). This overshadowed reports that Washington does not have a timeline for resuming negotiations with Iran, and potential Russia-Ukraine escalation. However, the latter did send wheat prices rallying on worries of further disruptions to supplies from one of the world’s largest grain producing regions. In the metals complex, gold futures tracked a weekly loss on the back of Friday’s post-Jackson Hole slide as hawkish-tilted commentary from Fed Chair Warsh acted as a headwind for non-yielding bullion. Nonetheless, losses were fairly measured after the yellow metal reached a three-month high this week on debasement trade concerns, global debt worries, and market chatter around renewed central bank buying. The U.S. dollar strengthened against its peers, aided by a Friday spike and sticky inflation data released earlier in the week.
Economic Weekly Roundup
Renewed Commitment to Avoid the Hall-of-Mirrors Problem: Key Takeaways from Fed Chair Warsh’s speech:
- Referencing the “hall of mirrors” problem, Chairman Warsh reiterated his view that the Fed should not appease markets with precommitments on interest rate decisions.
- AI may lay the foundation for a substantially higher growth path. Calling AI a potentially new factor of production has profound implications for productivity, labor markets, inflation, and the economy’s potential growth rate.
- Forward guidance has outlived its usefulness and can distort both policymaking and market behavior, especially if investors look to the Fed for their next trade. In other words, investors should form their own economic views rather than parsing every Fed communication for clues about future rate moves.
- Policymakers must avoid making forward-looking decisions based on stale information. Trends and real-time indicators matter more than isolated releases so it will be interesting to hear the eventual recommendations from the “Data Improvement” task force co-headed by Doug McMillon, the former CEO of Walmart.
- The inflation fight is not over. Warsh repeatedly emphasized that underlying inflation remains too high and that progress toward 2% has been slower than many expected. The U.S. dollar index rallied on this.
- Strong capital spending, robust earnings growth, and narrow credit spreads show that policy is not significantly restraining activity.
- The choice of highlighted papers in the speech supports Warsh’s disdain for forward guidance but also reveals his desire to shape a Fed with a CIA intelligence culture.
Bottom Line: We are entering a new era of monetary policy, one defined by less signaling, greater emphasis on real-time data, and a willingness to rethink economic first principles as AI reshapes the economy’s productive capacity. The distinctly hawkish speech gave support to the dollar as the chairman appears comfortable keeping policy higher for longer.
The Week Ahead
The following economic data is slated for the week ahead:
- Monday: Dallas Fed Manufacturing Activity (Aug)
- Tuesday: S&P Global U.S. Manufacturing PMI (Aug final), ISM Manufacturing Index (Aug), Construction Spending (Jul), JOLTS jobs report (Jul), Dallas Fed Services Activity (Aug), Omdia Total Vehicle Sales (Aug)
- Wednesday: MBA Mortgage Applications (Aug 28), ADP Employment Change (Aug), Factory Orders (Jul), Durable Goods Orders (Jul final), Capital Goods Orders and Shipments (Jul final), Fed Beige Book release
- Thursday: Challenger Job Cuts (Aug), Trade Balance (Jul), Nonfarm Productivity (2Q final reading), Unit Labor Costs (2Q final reading), Initial Jobless Claims (Aug 29), Continuing Claims (Aug 22), S&P Global U.S. Services and Composite PMIs (Aug final reading), ISM Services Index (Aug)
- Friday: Change in Nonfarm, Private, and Manufacturing Payrolls (Aug), Average Hourly Earnings (Aug), Average Weekly Hours All Employees (Aug), Unemployment Rate (Aug)
Important Disclosures
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk.
Indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
This material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
Unless otherwise stated LPL Financial and the third party persons and firms mentioned are not affiliates of each other and make no representation with respect to each other. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.
Asset Class Disclosures –
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
Bonds are subject to market and interest rate risk if sold prior to maturity.
Municipal bonds are subject and market and interest rate risk and potentially capital gains tax if sold prior to maturity. Interest income may be subject to the alternative minimum tax. Municipal bonds are federally tax-free but other state and local taxes may apply.
Preferred stock dividends are paid at the discretion of the issuing company. Preferred stocks are subject to interest rate and credit risk. They may be subject to a call features.
Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
Mortgage backed securities are subject to credit, default, prepayment, extension, market and interest rate risk.
High yield/junk bonds (grade BB or below) are below investment grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors.
Precious metal investing involves greater fluctuation and potential for losses.
The fast price swings of commodities will result in significant volatility in an investor’s holdings.
This research material has been prepared by LPL Financial LLC.
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