Weekly Market Update (Aug 30, 2026)
HIGHLIGHTS
After the Jackson Hole speech, markets expect a September rate hike amid supportive financial conditions and resilient growth. The ECB and BoJ are also expected to hike in September.
- Jackson Hole: The Fed Chairman’s speech at the Jackson Hole meeting was hawkish. He mentioned that the inflation figures are concerning. A hike in September is possible if August PPI and CPI come in firmer.
- G10: Ongoing energy volatility and the borrowing boom in AI are keeping G10 bonds under pressure, especially longer-end bonds. Markets expect yield curves to steepen.
- China: Several policy rollouts indicate that China is moving in the opposite direction of opening up. There is tighter oversight of offshore assets, including closing tax loopholes, keeping retail savings within the financial system, and strengthening capital flow management.
MARKETS
| Nasdaq | 26,402.42 | +0.85% |
| S&P 500 | 7,711.76 | +0.49% |
| Dow | 53,559.99 | +0.53% |
| 10-Year | 4.72% | -2bps |
| Brent | 88.10 | -6.66% |
| DXY | 99.68 | +0.85% |
*Data as of market close. 5-day change ending on Friday.
VIEW FROM THE STREET
Equity
J.P. Morgan: The AI investment cycle remains supportive, even though volatility is likely to persist. Portfolio construction is more important for surviving short-term price swings.
Standard Chartered: We recommend eurozone bank stocks due to the higher-for-longer rate backdrop. Markets expect further ECB tightening.
Fixed Income
Goldman Sachs: The reaffirmation of the Fed’s inflation commitment and reclaiming control over short-term interest rates support long-end outperformance. The Fed’s view on the economy is skewed hawkish.
Morgan Stanley: Recent weakness in long-duration Treasuries was not driven by fundamentals. It was affected by liquidity technicals. Officials believe the solution would be to double long-bond buybacks.
Economy
Morgan Stanley: Interest costs in the US are taking up 20% of tax revenue. If they grow faster than nominal GDP, there will be an increase in debt, which will reduce fiscal spending flexibility.
UBS: We expect inflation to ease gradually and allow the Fed to keep rates unchanged. With the new Fed Chairman’s less-guided approach to monetary policy, policy uncertainty has increased.