Market Summary - August 21, 2026
Overview
The market experienced a shallow rebound at the end of the week, with limited volatility and trading volume in the US market. Investors are awaiting Nvidia's upcoming results, which are anticipated to influence market direction. US index futures showed a slight increase of approximately 0.2% to 0.6% late in the session.
Market Sentiment
After a bearish week, Friday's session saw a moderate correction in negative sentiment. This rebound is attributed to a mechanical relationship between debt yields and equity returns rather than a fundamental improvement in corporate performance. The decline in yields has made stocks more attractive, although this demand is perceived as artificial. The impact of Scott Bessent's intervention in the bond market remains uncertain.
Geopolitical Developments
Former President Donald Trump has reiterated his position on Iran, halting negotiations and indicating a shift towards economic pressure while reducing military pressure. However, specific details on this strategy are still pending.
Company News - USA
- Newmont Mining (NEM.US): Shares rose by approximately 2.5% due to expectations of fiscal unrest benefiting gold miners.
- MicroStrategy (MSTR.US): The stock increased by about 6%, buoyed by gains in Bitcoin and Ethereum, which positively influenced crypto-linked companies.
- Ubiquiti (UI.US): Despite beating revenue expectations with USD 937 million against an expected USD 870 million, shares fell by about 4%.
- Ross Stores (ROST.US): Shares climbed around 6% following an improved guidance driven by increased customer traffic.
- Broadcom (AVGO.US): The company is preparing to challenge Nvidia in the chip market, seeking around USD 60 billion in loans and investments.
Macroeconomic Data - USA
Recent US economic data highlighted a mixed performance:
- Services PMI: 56.8 (Expected: 54.0)
- Manufacturing PMI: 53.2 (Expected: 53.9)
The services sector showed a sharp rise, offsetting a slowdown in manufacturing, which is still pressured by energy costs and logistical issues. The expansion in services may prompt the Federal Reserve to adjust its interest rate messaging.
Market Developments - Europe
European markets also corrected the bearish trend, supported by rising bond prices and falling yields. Major indices, particularly in Switzerland and Spain, posted gains of about 1%.
Company News - Europe
- JD Sports: Shares increased by 5% after recovering from a previous drop due to a profit forecast cut.
- Nibe Industrier: The stock rose by 8% following strong second-quarter results.
- Straumann: Shares fell by 3% after receiving a negative recommendation from an investment bank.
Macroeconomic Data - Europe
Eurozone data showed a composite PMI rise to 52.1, with strong manufacturing performance in Germany. However, services lagged, falling below 50 in both France and Germany. Lower inflation expectations may provide the European Central Bank with more flexibility.
Forex Market
Beijing's Deputy Finance Minister announced new fiscal measures for the second half of the year, leading to a rise in the AUD and NZD by about 0.8% against the US dollar.
Commodities
Wheat prices have been volatile due to supply issues from conflicts in Iran and Ukraine. Brent crude oil is slightly lower, trading below USD 92 per barrel, while European gas prices have risen to EUR 66. Precious metals like gold and silver are gaining due to concerns over US fiscal policy stability.
Cryptocurrency Market
The cryptocurrency market is benefiting from instability in the US debt market, with Bitcoin rising over 6% to USD 77,000 and Ethereum gaining 4% to around USD 2,440. Solana also saw an increase of nearly 5%, surpassing USD 91.
Conclusion
The market's performance at the end of the week reflects a complex interplay of economic data, corporate earnings, and geopolitical developments, setting the stage for potential volatility in the coming weeks.