US Markets Highlights — Aug 1, 2026 | Aivina
August 1, 2026
US equity markets, particularly the S&P 500 and NASDAQ, achieved new record highs, primarily driven by strong performance in the technology sector and continued optimism surrounding artificial intelligence. NVIDIA's robust earnings report further fueled this rally. While inflation, as measured by April's PCE data, remained sticky, Fed officials expressed ongoing caution, signaling potential for prolonged higher interest rates or even further tightening if inflation persists.
Highlights
- Tech sector surged, AI optimism fueled, S&P 500, NASDAQ hit records.
- NVIDIA earnings beat, propelled market higher, broad tech rally.
- Equity markets showed resilience, tech leadership continued, despite rising bond yields.
Macro Overview
Inflation
April PCE data showed core inflation at 2.8% year-over-year, largely meeting expectations but remaining above the Fed's 2% target, indicating persistent stickiness.
Interest Rate Outlook
Fed minutes reveal inflation concerns, officials willing to maintain rates or hike if needed; rate cut expectations pushed further out.
Risk Sentiment
bullish
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