U.S. equities ended the final full week of August modestly higher as strong AI-related earnings supported technology stocks. Meanwhile, Fed Chairman Kevin Warsh’s hawkish Jackson Hole remarks reinforced the inflation fight and pushed investors to reconsider the path of interest rates.
U.S. stocks ended lower as rising Treasury yields, higher oil prices, and technology weakness pressured markets. Health care and energy bucked the trend, while investors turned their attention toward PCE inflation, GDP, Jackson Hole, and the Federal Reserve's next policy signals.
This weekly market recap examines cooler July inflation, Federal Reserve rate expectations, strong energy sector performance, mixed S&P 500 results, rising oil prices, Treasury yields, and the economic data investors will be watching in the week ahead.
U.S. stocks advanced as strong cloud-computing results renewed confidence in artificial intelligence spending. However, limited guidance from the Federal Reserve pushed longer-term Treasury yields higher, keeping volatility elevated as investors prepared for a busy week of manufacturing, services, and employment data.
U.S. stocks declined as investors questioned the potential returns from record AI spending and oil climbed amid renewed Middle East tensions. With Treasury yields rising and the Federal Reserve preparing to meet, markets are turning to GDP, PCE inflation, and labor-cost data for their next directional catalyst.
Technology stocks retreated as investors questioned elevated AI valuations, while escalating Middle East tensions sent oil prices sharply higher. Cooler inflation supported bonds and reduced near-term rate-hike concerns, but energy-related price pressures remain a key risk for markets and Federal Reserve policy.