Market Summary - August 21, 2026

Market Overview

The US indices opened with moderate gains, with the Russell and Dow leading the way, showing an increase of about 0.6%. In contrast, the Nasdaq 100 and S&P 500 futures exhibited slight weaknesses, fluctuating between 0.1% to 0.2%.

This improvement in market sentiment can be attributed to a recent intervention in the US debt market by the US Treasury Secretary, aimed at addressing the rise in bond yields, particularly for longer maturities. Following this intervention, bond yields declined, enhancing the attractiveness of equities, although the sustainability of this effect remains uncertain.

As the week draws to a close, overall market volatility is expected to be limited, with Nvidia's upcoming results next week being the primary catalyst for potential significant movements in the indices.

Company News

• Newmont Mining (NEM.US): Gold miners are experiencing gains of up to 3% due to rising fiscal concerns.
• MicroStrategy (MSTR.US): The stock is up approximately 8%, buoyed by rallies in Bitcoin and Ethereum, which are positively impacting crypto-linked companies.
• Ubiquiti (UI.US): The networking solutions provider exceeded investor expectations with Q2 2026 results, reporting USD 937 million in revenue against an expected USD 870 million, leading to a 4% increase in stock price.
• Ross Stores (ROST.US): The US discount retailer has strengthened due to a strong upgrade in guidance, driven by increased customer traffic across its store chains.
• Broadcom (AVGO.US): The company is preparing to compete with Nvidia in the chip market, seeking around USD 60 billion in loans or investments in collaboration with Apollo Asset Management, resulting in a stock increase of just over 1% at the open.

Technical Analysis

The US100 index is currently moving within a widening downward channel. The recent weakness among buyers is evident from a quick retreat from the 30,000 points zone, with a continued movement towards the 61.8% Fibonacci level. The MACD line has crossed below the signal line, indicating a potential for continued correction. However, significant resistance zones, particularly Fibonacci levels, the EMA100, and the lower boundary of the trend, present a major challenge for sellers.

Macroeconomic Data

Today's key economic release includes the PMI index for Manufacturing and Services:

• The Services PMI rose significantly to 56.8, surpassing expectations.
• The Manufacturing PMI showed a moderate decline to 53.2, indicating that energy costs and logistical disruptions are still impacting the sector.

These results suggest that the Federal Reserve may lean towards raising or maintaining interest rates rather than considering cuts, as consumer spending, particularly among wealthier individuals, is supporting the services sector more than anticipated.