US Markets Highlights — Aug 28, 2026 | Aivina
August 28, 2026
US equity markets saw gains, largely driven by the technology sector and AI optimism, particularly with strong performance from major tech companies. Treasury yields softened as recent inflation data, including the Core PCE, met expectations, suggesting a gradual cooling of price pressures. Economic growth, however, showed signs of deceleration with a downward revision to Q1 GDP, reinforcing the Federal Reserve's cautious, data-dependent stance on potential interest rate adjustments later in the year.
Highlights
- Tech sector drove gains; S&P 500, Nasdaq climbed; AI enthusiasm sustained momentum.
- Treasury yields softened; inflation expectations eased; boosted growth stock appeal.
- Economic growth revised lower; Q1 GDP slowed; Fed rate cut hopes buoyed.
Macro Overview
Inflation
Core PCE met expectations at 2.8% YoY, headline at 2.7%. Inflation is cooling gradually, still above Fed's 2% target.
Interest Rate Outlook
Fed officials remain data-dependent, favoring patience. Market sees potential for one-to-two cuts later in 2024, contingent on sustained inflation progress.
Risk Sentiment
bullish
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