Weekly Market Performance — August 14, 2026

LPL Research provides its Weekly Market Performance for the week of August 10, 2026. Global stocks delivered a mixed but generally constructive week as easing U.S. inflation pressures reinforced expectations that the Federal Reserve will remain patient on interest rate changes, supporting investor risk appetite. U.S. equities were boosted by the cooler-than-expected data and some upbeat artificial intelligence (AI) related takeaways, while exchanges in Europe and Asia ended mixed. Meanwhile, bond markets fell as market participants mulled higher oil prices, signs of a slowing consumer, and tempered rate hike expectations. Commodity prices moved higher, led by gains in oil amid ongoing geopolitical tensions and supply concerns.

Stock Index Performance

S&P 500 Index Sectors

Fixed Income and Commodities

Source: LPL Research, Bloomberg 8/14/26 @ 3:14 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.

U.S. and International Equities

U.S. Equities: Major averages concluded a relatively quiet week with a fairly quiet result, ending mixed following modest moves from last week’s finish. The S&P 500 was rangebound over the first half of the week, chalking up the lack of a strong directional driver to the pre-July inflation data waiting game. Nonetheless, stocks rose and risk appetite received a lift after consumer price pressures arrived cooler than expected, also easing from June’s print — alleviating market concerns of an impending rate hike from the Federal Reserve. Just 24 hours later, lighter wholesale inflation underscored this dynamic and further boosted sentiment.  

Outside of macro dynamics, the artificial intelligence (AI) theme also made mostly positive headlines. Among highlights, earnings reports from Coreweave (CRWV) and SuperMicro Computer were well received, while Sandisk (SNDK) rose after affirming a strong revenue outlook at an investor event. Elsewhere, shares of Alphabet (GOOG/L) were hit by the firm’s latest AI application worries and reports from Cisco (CSCO) and Applied Materials (AMAT) failed to meet Wall Street’s high hopes. Geopolitical dynamics broadly remained on the backburner. 

International Equities: Across the pond, European stocks finished mixed. Market participants refrained from outsized bets this week as crosscurrents from rising oil prices and few updates from the Middle East were countered by the positive undertone of a strong earnings season. On the macro front, U.K. shares underperformed amid calls for the government to aid the subdued housing market and a surprise widening of the trade balance on oil imports from the U.S. and Norway. Meanwhile, Germany outperformed thanks to Friday’s gains.  

Asia-Pacific equities ended the week mixed, but broader regional indexes posted their best week in two months. In similar fashion, news flow was relatively slow, leaving AI optimism and the U.S. monetary policy path at the forefront. South Korea easily led gains with an 11.5% surge on the back of positive earnings takeaways from U.S. chipmakers and reports of planned investments in local semiconductor names. Japan was also among outperformers. Shares in Tokyo were lifted by tech-related optimism, as well as banking shares as post-intervention weakness in the yen bolstered pricing for a Bank of Japan rate increase. On the other hand, greater China lagged as shares gave back some of their recent outperformance with policymakers again stopping short of introducing significant easing. 

Fixed Income, Currency, and Commodity Markets

Fixed Income: Core bonds, as measured by the Bloomberg Aggregate Index (Agg), traded lower over the last five days. The July inflation print was easily the week’s main event, and better-than-feared results led Treasury yields lower (prices higher) as traders reduced bets that Fed Chair Kevin Warsh and company will tighten monetary policy next month. A second helping of cooler-than-expected inflation figures from the wholesale side powered the Treasury market back into week-to-date positive territory. As a result, markets pushed out wagers on the first Fed rate hike since 2023 until next spring. However, gains in Treasury yields were reversed Friday as oil prices extended weekly gains, while shorter-dated Treasuries outperformed amid late week losses as investors digested signs of a slowing consumer following weaker-than-expected retail sales.  

Commodities and Currencies: The broader commodity complex rose this week after holding an early week rally. Energy prices remained top of mind for commodity market watchers as West Texas Intermediate (WTI) crude oil futures advanced as the deadlock around the Strait of Hormuz continued and Washington threatened to increase economic pressure on Iran. Also bullish for oil prices was warnings from the International Energy Agency of a deeper global supply deficit — projecting the widest shortfall in five years. Shipping routes remain risky, although additional oil from the Middle East is expected to arrive stateside and offer some relief to low inventories. Within the metals complex, gold rallied back into positive territory Friday after erasing weekly gains. Profit taking was tabbed for Thursday’s overnight slump, while easing prospects of an imminent rate hike and inflation uncertainty from the Mideast stalemate supported the yellow metal. Silver prices also gained on similar dynamics, as well as ongoing industrial demand from solar panels and electricity grid production. In currencies, the dollar edged higher while the yen weakened, retracing roughly half of its intervention move on persistently wide interest rate differentials, fiscal concerns, and elevated energy and import costs.

Economic Weekly Roundup

Highlights from the July Consumer Price Index release: 

• Consumer inflation rose 0.1% month over month  in July, pulling the annual pace of inflation down to 3.4% from 3.5%. Still too high but the direction is good. 
• Energy prices fell in July as investors had high hopes that the Middle East crisis would improve. The decline in energy prices helped soften the inflation pressures of the month. Unfortunately, those high hopes were short lived. 
• It’s encouraging that auto insurance fell for the eighth time in the last nine reports. The index now sits at mid-2024 levels. However, we have an uncomfortably high level of uninsured or underinsured motorists on the road so those who pay for insurance will not likely see premiums back to normal. 
• Restaurant prices continue to rise, mostly from high consumer demand and less from supply constraints. Careful observers will know restaurants are busy just about every day of the week so don’t expect too much inflation moderation in this category. 
• Airfare is up roughly 26% from a year ago but we know this category can revert quickly and so we should expect this to add less to inflation in the latter part of the year. 

Bottom Line: As the economy reaches the end of the year, we should expect inflation to decelerate to 2.7% as transportation costs and health care costs ease. We expect the debate at the September FOMC meeting to be lively as the economy experiences a tight labor market while the inflation picture is quite blurry. Our baseline is the Fed holds rates but an increasing number of voting members are hawkish and could convince the majority to implement a hike. Overall risk sentiment is positive as inflation is expected to improve by the end of the year. 

The Week Ahead

The following economic data is slated for the week ahead:    

• Monday: Empire Manufacturing (Aug), NAHB Housing Market Index (Aug), Total Net TIC Flows (Jun), Net Long-term TIC Flows (Jun) 
• Tuesday: ADP Weekly Employment Change (Aug 1), New York Fed Services Business Activity (Aug), Import and Export Price Indexes (Jul), Housing Starts (Jul), Building Permits (Jul preliminary), Industrial and Manufacturing Production (Jul), Capacity Utilization (Jul), Pending Home Sales (Jul) 
• Wednesday: MBA Mortgage Applications (Aug 14), FOMC Meeting Minutes (Jul 29) 
• Thursday: Philadelphia Fed Business Outlook (Aug), Initial Jobless Claims (Aug 15), Continuing Claims (Aug 8), Leading Index (Jul) 
• Friday: S&P Global U.S. Manufacturing, Services, and Composite PMIs (Aug preliminary), Bloomberg U.S. Economic Survey (Aug)