Newsletter — week of August 10, 2026

Market performance

The S&P 500 ends the week slightly higher, about +0.5%, after a string of all-time highs. On Thursday the index posted its 27th record close of the year, with an intraday high of 7,816 points, clearing the 7,800-point mark for the first time.

This is the third straight week of gains, the longest streak since May. Friday did bring a slight wobble, however, with a 0.2% pullback after a disappointing read on U.S. consumer sentiment.

The underlying trend nonetheless remains solidly bullish, driven by very strong corporate earnings, with S&P 500 profit growth of about 50% year-over-year at this point in the earnings season.

Below, the S&P 500 in 2026

Market news

Tamer inflation reassures on the Fed

July’s CPI and PPI came in below expectations, with the PPI flat in July versus an expected 0.1% rise. This positive surprise sent the probability of a September rate hike tumbling from 45% to just 30% according to the CME FedWatch tool, and it’s the main driver of the market’s rise this week.

Below, the U.S. inflation rate

Oil rises amid Middle East tensions

The United States this week threatened to maintain an indefinite naval blockade of Iran in the Strait of Hormuz—a chokepoint accounting for about a fifth of the world’s oil—after ceasefire talks failed. Maritime traffic through the strait has fallen to a fraction of its normal level. Brent climbed back toward $88–90 and WTI toward $82, and the energy sector was the week’s big stock-market winner, up 7.8%.

Below, the price of WTI in 2026

This is worth watching closely, because any worsening of the situation could weigh on inflation and therefore on the path of interest rates.

Tech earnings set the tone ahead of Nvidia

Cisco reported record quarterly results this week, with revenue up 17.6% year-over-year and AI-related orders up 40%, and raised its 2027 guidance well above consensus.

CoreWeave, for its part, jumped 18% after unveiling a $104 billion order backlog. These reports keep the market’s enthusiasm alive ahead of the key date of August 26, Nvidia’s earnings release, which will be scrutinized as a barometer of the strength of AI demand.