Global Markets Weekly Update
Week Ending August 2026
U.S. Market Overview
Major U.S. stock indexes finished the week mixed as investors balanced easing inflation concerns and favorable AI-related earnings against rising oil prices and weaker consumer data. The Russell 2000 and S&P MidCap 400 Indexes performed best, each gaining over 1%, while the Dow Jones Industrial Average finished lower.
Inflation Data
U.S. inflation data showed a 0.1% increase in the consumer price index (CPI) for July, with a year-over-year increase of 3.4%. Core CPI rose 0.2% month-over-month. These figures eased expectations for a September rate hike, with futures markets pricing a 32% chance of a hike by the Fed.
Retail Sales and Consumer Sentiment
Retail sales fell 0.6% in July, missing estimates, while consumer sentiment dropped to 51 in August, reflecting concerns about business conditions and inflation expectations.
Treasury Yields
Treasury yields were volatile, with shorter-term yields decreasing as rate-hike expectations eased, while longer-term yields remained elevated due to fiscal concerns.
European Market Overview
The STOXX Europe 600 Index ended the week down 0.36%. Investors weighed resilient economic data against geopolitical uncertainties. The energy sector saw fluctuations due to rising oil prices and weather-related disruptions in France.
Japan Market Overview
Japan's stock markets saw substantial gains, with the Nikkei 225 rising 4.74%. Strong technology earnings and a weakening yen boosted export-oriented industries. Speculation about a potential interest rate hike by the Bank of Japan increased.
China Market Overview
Chinese equities ended the week lower, with inflation cooling more than expected. The government eased homebuying rules to stimulate the property market, while the Hang Seng Tech Index plans to expand to include more AI and robotics companies.
Other Key Markets
In Brazil, markets faced volatility due to election uncertainty despite improving inflation. Argentina's inflation remained a focus, with consumer prices rising slightly but still showing a disinflation trend.
Market Performance Summary
| Index | Friday’s Close | Week’s Change | % Change YTD |
|---|---|---|---|
| DJIA | 53,732.41 | -304.52 | 11.80% |
| S&P 500 | 7,785.76 | 28.12 | 13.74% |
| Nasdaq Composite | 26,729.16 | 38.55 | 15.00% |
| S&P MidCap 400 | 3,926.99 | 41.42 | 18.81% |
| Russell 2000 | 3,068.41 | 33.91 | 23.63% |
Source of data: Reuters, Yahoo! Finance, Bloomberg. Closing data as of 4 p.m. ET.