US Markets Highlights — Aug 23, 2026 | Aivina
August 23, 2026
US equity markets, particularly the S&P 500 and Nasdaq, hit new record highs this week, fueled by strong tech sector performance and AI optimism. While May's CPI data showed inflation cooling more than expected, the Federal Reserve held rates steady and its updated dot plot signaled only one rate cut for 2024, tempering aggressive market expectations. Despite the Fed's cautious outlook, strong earnings and cooling inflation data supported a bullish market sentiment.
Highlights
- S&P 500, Nasdaq reached new highs; tech sector led market gains; AI enthusiasm fueled rally.
- May CPI report showed cooling inflation; boosted initial rate cut hopes; improved market sentiment.
- Fed's dot plot projected one 2024 cut; tempered aggressive rate cut expectations; caused brief market pause.
Macro Overview
Inflation
May CPI and PPI cooled more than expected, with headline CPI flat month-over-month, signaling progress towards the Fed's target.
Interest Rate Outlook
Fed kept rates steady; updated dot plot indicated only one 2024 rate cut, tempering market's aggressive rate cut expectations.
Risk Sentiment
bullish
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