US Markets Highlights — Aug 4, 2026 | Aivina
August 4, 2026
US markets saw a mixed week, with the S&P 500 and Nasdaq initially hitting new highs, largely propelled by strong tech performance. May's CPI report showed inflation cooling more than expected, providing a positive impulse. However, the Federal Reserve's updated projections indicated only one rate cut for 2024, a more hawkish outlook that tempered market enthusiasm. Investor sentiment remains cautious, balancing cooling inflation against the Fed's higher-for-longer rate stance.
Highlights
- S&P 500, Nasdaq hit new highs; Tech-driven rally continued; NVIDIA fueled gains.
- May CPI cooled significantly; Inflation pressures eased; Data beat expectations.
- Fed projects only one cut; Hawkish dot plot surprised; Rates held steady.
Macro Overview
Inflation
May CPI showed 0.0% MoM and 3.3% YoY, while core CPI was 0.2% MoM and 3.4% YoY, indicating a welcome slowdown.
Interest Rate Outlook
Fed held rates steady; new dot plot signals only one rate cut in 2024, a more hawkish stance than previously expected.
Risk Sentiment
neutral
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