US Markets Highlights — Aug 25, 2026 | Aivina
August 25, 2026
US markets closed the week higher, led by technology stocks, with the S&P 500 and Nasdaq posting gains. Key economic data included the April Core PCE Price Index, which met expectations at 2.8% year-over-year, and rising jobless claims, suggesting a cooling labor market. While inflation remains above target, the data offered some support for future Fed rate cut considerations, though officials maintain a cautious stance.
Highlights
- Tech sector rallies; propelling S&P 500, Nasdaq higher; fueled by AI optimism.
- Core PCE inflation data; met market expectations; keeping Fed cut hopes alive.
- Jobless claims increased; signaling labor market cooling; easing wage pressure concerns.
Macro Overview
Inflation
April Core PCE rose 0.2% MoM, 2.8% YoY, meeting expectations. This indicates persistent but stable inflation, still above the Fed's 2% target.
Interest Rate Outlook
Fed officials remain data-dependent. Market expectations for a September cut are uncertain, slightly boosted by recent weaker data but constrained by sticky inflation.
Risk Sentiment
neutral
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