Weekly Market Update (Aug 09, 2026)
HIGHLIGHTS
The S&P 500 hit a record high this week. Growth remains resilient, while the labor market is cooling. All eyes are on US CPI in the coming week.
- Economic Data: The latest jobs report showed labor market cooling. Combined with moderating oil prices, it could help offset rising input prices and support the view that the Fed will hold rates.
- China: Export data came in strong again, reinforcing the constructive view on China’s economy. AI-related exports continue to benefit from the global AI investment cycle. Green tech exports are also strong due to the energy transition.
- IPO: Q2 marked a record quarter for US equity issuance. Markets are focusing on the rising volume of follow-on equity offerings. Although the dollar amount of follow-on issuance is reaching a record high, the activity looks more like a reversion to the mean than a boom.
MARKETS
| Nasdaq | 26,690.62 | +5.19% |
| S&P 500 | 7,757.64 | +3.58% |
| Dow | 54,036.93 | +2.96% |
| 10-Year | 4.66% | -9bps |
| Brent | 83.55 | -7.29% |
| DXY | 99.6 | -0.20% |
*Data as of market close. 5-day change ending on Friday.
VIEW FROM THE STREET
Equity
UBS: Corporate earnings are supporting confidence in AI-related demand. Data center construction has been boosting demand for construction equipment and power generation.
Standard Chartered: We recommend Chinese equities and expect the rally to extend in the second half of this year. It is mainly supported by policy stimulus, earnings, technology development goals, and cheap valuations.
Fixed Income
Goldman Sachs: The AI theme has increased bifurcation in credit markets. Markets are still reassessing insulated hardware and infrastructure companies. That could explain the gap between AI and non-AI assets, as well as differentiation within the AI ecosystem.
Morgan Stanley: US Treasuries recently hit their highest level since 2007 because of the 30Y bond sell-off. The 10Y yield is also testing its cycle high. This is mainly driven by the Fed’s announcement and its new approach.
Economy
UBS: Manufacturing PMI is better than expected, and output has accelerated. Strong AI investment has helped offset the negative impact of import tariffs.
J.P. Morgan: Q2 GDP data declined slightly from Q1. Consumer spending stayed high, and investment remained strong, supported by the AI capex buildout. The weaker print was driven by high imports, falling inventories, and the release of the Strategic Petroleum Reserve, which counted as a reduction in government spending.