Market Update - August 13, 2026
US Market Overview
The S&P 500 is experiencing a rise of 0.3%, nearing historic highs, while the Nasdaq 100 is up by 0.6%. This upward trend is largely attributed to recent inflation data.
Yesterday's Consumer Price Index (CPI) reading met expectations, alleviating concerns regarding inflationary pressures. Additionally, today's Producer Price Index (PPI) data came in lower than anticipated, contributing to a decrease in the likelihood of a Federal Reserve interest rate hike in September, which has dropped from about 50% to just over 30%.
Market Sentiment and Fed Policy
There has been a notable shift in market expectations regarding future Federal Reserve actions. The market no longer fully anticipates a rate hike before the end of the year, and skepticism is growing regarding a potential increase in October.
Furthermore, WTI crude oil prices have decreased by 2.5%, currently trading at just over $81 per barrel, which may also be influencing market sentiment positively.
Sector Performance
The Nasdaq 100 is being led by companies such as CoreWeave, Netflix, and AppLovin, which have struggled over the past year. Conversely, Cisco Systems reported its Q2 results, estimating future sales linked to the AI data center boom at $7.5 billion for the current fiscal year, which disappointed investors given last year's AI-related orders of $9.3 billion.
This indicates a shift in investor focus towards the conversion of demand into actual revenue, suggesting that high order levels alone are no longer sufficient to satisfy market expectations.
Company News Highlights
- Cerebras Systems ($CBRS.US): Shares are declining due to cautious revenue growth forecasts for their AI chips.
- Accelerant ($ARX.US): Shares surged by 44% following an acquisition announcement by Thoma Bravo at $20.25 per share.
- Harmonic ($HLIT.US): Shares increased by approximately 25% after reporting financial results that exceeded market expectations.
- Birkenstock ($BIRK.US): Shares rose by 17% following an upward revision of full-year adjusted EBITDA forecasts and better-than-expected Q2 sales.