Weekly Market Insights
August 21, 2026 Volume 13 Issue 32
Last week, U.S. equities moved broadly lower as leadership favored value-oriented areas and a narrow set of sectors. Large-cap value held up better than growth, while healthcare, energy, and materials outperformed and technology and industrials lagged. Internationally, emerging markets and Latin America were more resilient than developed markets. Fixed income was mixed. Shorter maturities were steady, while long-term Treasury yields whipsawed midweek — rallying sharply on the Treasury’s buyback announcement before fully reversing those gains within 24 hours, ending the week elevated. Commodities advanced, led by oil and precious metals, and Bitcoin surged more than 22%, benefiting alongside gold from fiscal debasement concerns tied to the buyback announcement.
Corporate fundamentals remained strong, with S&P 500 second-quarter earnings growth at approximately 54% year-over-year on a blended basis, and European earnings posting their strongest season in three years. Inflation remained elevated, and although productivity gains helped offset some cost pressures, real wage growth continued to lag inflation for the fourth consecutive month.
Policy developments centered on inflation. Fed minutes showed broader support for tightening if inflation fails to decline, with three officials formally dissenting in favor of a hike at the July meeting. Chairman Warsh reduced forward guidance, leaving markets more dependent on incoming data. The Treasury announced that long-end bond buyback operations would at least double, effective September 9, to be financed through additional bill issuance rather than new liquidity.
The week’s themes focused on resilient earnings, inflation, policy uncertainty, and geopolitical issues. Iranian fuel export limits through Hormuz tightened diesel supply, while Ukrainian strikes on Russian refineries worsened transportation and input costs. AI influenced earnings, investing, and financing, linking demand, capital availability, and market concentration.
Have a great week!
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*All economic release data referenced from public sources believed to be accurate. *The source of data for all charts/graphs included in this presentation is Bloomberg LP. *Figures quoted represent monthly changes (m/m) and are seasonally adjusted.