US Markets Highlights — Aug 31, 2026 | Aivina
August 31, 2026
US equity markets, led by the S&P 500 and Nasdaq, started June with new highs, extending May's tech-driven gains. April's PCE inflation data confirmed sticky price pressures, reinforcing the Federal Reserve's cautious "higher for longer" interest rate stance. Meanwhile, a weaker-than-expected manufacturing PMI signaled slowing economic activity, injecting some growth concerns into the market outlook.
Highlights
- S&P 500, Nasdaq reached new highs; tech sector drove performance; market optimism remains strong.
- April PCE inflation data released; core measure met expectations; inflation remains persistently sticky.
- Manufacturing PMI unexpectedly contracted; economic activity showed weakness; growth concerns emerged.
Macro Overview
Inflation
April PCE showed sticky inflation at 2.7% headline and 2.8% core YoY, largely in line with expectations, indicating persistent price pressures.
Interest Rate Outlook
Fed officials remain cautious; market sees slight increase in September cut odds; "higher for longer" narrative persists.
Risk Sentiment
neutral
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