Your Monthly Market Newsletter, AUGUST 2026

Stocks

The stock market was feeling the heat in July, with most major indices selling off, continuing the decline that started in June. The selloff was primarily driven by an escalation of the Iran War, which sent oil prices higher as the Strait of Hormuz closed. In addition, fears that Artificial Intelligence (AI) trade could be overhyped saw many tech-specific stocks like semiconductors lead markets down further. Not all areas of the market performed poorly, however, as value stocks held up much better than growth stocks, a reminder that diversification remains important to investor portfolios.  

Sector Performance

The selloff was very narrow, with seven of the eleven sectors within the S&P 500 actually finishing the month positive. Energy was the best-performing sector, ending up over double digits on the back of rising oil prices throughout the month. Financials also saw a strong rise as many of the big banks reported blowout earnings, an encouraging sign for economic growth. Some of the worst performers were areas like Consumer Discretionary, Communication Services, and Technology, which saw the brunt of the selloff, but because they make up such a large part of the index, their negative returns were able to sway the entire S&P 500.    

Bonds

Fixed income markets sold off in the first month of the third quarter. Interest rates are inversely correlated with prices, so when interest rates move up, prices move down, and interest rates moved sharply higher in July amid fears that the Federal Reserve would set interest rates higher to fight inflation caused by the reignition of the conflict in the Middle East. The Federal Reserve did meet in late July but opted to hold interest rates steady, but markets are still anticipating hikes later this year. Higher interest rates, however, do mean bonds now have higher yields, which typically means higher forward-looking returns.

Economic Update

Economic data released in July was mainly focused around the events in June, chiefly, the pause in the war, and decline in oil prices which has since reversed. All three measures of inflation, the Consumer Price Index, the Producer Price Index, and the Personal Consumption Expenditures Price Index all declined as energy prices fell, but markets are expecting a rebound in July as oil prices have risen once again. Investors also got the first reading of GDP, which saw growth in the U.S. increase by 1.5% in the second quarter, fueled by heightened consumer spending. Consumer sentiment recovered mildly in the month of June as consumers felt relief from lower prices, and a strong labor market, where unemployment even fell to 4.2%. The economy remains on solid footing, but going into August, questions remain about the potential impact of oil prices.     

Conservation efforts across Africa are delivering encouraging results. In Uganda, twelve endangered Nubian giraffes have been relocated to Ajai Wildlife Reserve to establish a new population and help safeguard the species from potential habitat pressures linked to expanding oil development near Murchison Falls National Park.

Meanwhile, in South Africa, six orphaned rhinos rescued after losing their mothers to poaching have successfully returned to the wild and now have calves of their own, demonstrating how targeted conservation programs can help rebuild vulnerable wildlife populations.

For more information on this incredible story, read here. 

THOUGHT FOR THE MONTH

^{Index Definitions}

^{Dow Jones Industrial Average:The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities.}

^{Dow Jones U.S. Real Estate Total Return Index:The index is designed to track the performance of real estate investment trusts (REIT) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies.}

^{NASDAQ Composite:The NASDAQ Composite is a market-cap weighted index of all issues listed on the Nasdaq stock exchange. It is heavily weighted towards the technology sector.} 

^{S&P 500 Bond Index:The S&P 500® Bond Index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap U.S. equities. Market value-weighted, the index seeks to measure the performance of U.S. corporate debt issued by constituents in the iconic S&P 500.}

^{S&P 500 Consumer Discretionary:The S&P 500® Consumer Discretionary comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer discretionary sector.}

^{S&P 500 Consumer Staples:The S&P 500® Consumer Staples comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer staples sector.}

^{S&P 500 Energy:The S&P 500® Energy comprises those companies included in the S&P 500 that are classified as members of the GICS® energy sector.}

^{S&P 500 Financials:The S&P 500® Financials comprises those companies included in the S&P 500 that are classified as members of the GICS® financials sector.}

^{S&P 500 Index:The S&P 500® index is a market-cap weighted index of the largest 500 companies headquartered in the United States. The index covers approximately 80% of available market capitalization.}

^{S&P 500 Utilities:The S&P 500® Utilities comprises those companies included in the S&P 500 that are classified as members of the GICS® utilities sector.}

^{S&P U.S. Aggregate Bond Index:The S&P U.S. Aggregate Bond Index is designed to measure the performance of publicly issued U.S. dollar denominated investment-grade debt. The index is part of the S&P AggregateTM Bond Index family and includes U.S. treasuries, quasi-governments, corporates, taxable municipal bonds, foreign agency, supranational, federal agency, and non-U.S. debentures, covered bonds, and residential mortgage pass-throughs.}

^{S&P U.S. Treasury Bond Index:The S&P U.S. Treasury Bond Index is a broad, comprehensive, market-value weighted index that seeks to measure the performance of the U.S. Treasury Bond market.}

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^{A portion of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.}

^{Index performance does not reflect the deduction of any fees and expenses, and if deducted, performance would be reduced. Indexes are unmanaged and investors are not able to invest directly into any index. Past performance cannot guarantee future results.} 

^{Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect again loss. In general, the bond market is volatile; bond prices rise when interest rates fall and vice versa. This effect is usually pronounced for longer-term securities. Any fixed-income security sold or redeemed prior to maturity may be subject to a substantial gain or loss. Vehicles that invest in lower-rated debt securities (commonly referred to as junk bonds or high-yield bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. International investing involves special risks not present with U.S. investments due to factors such as increased volatility, currency fluctuation, and differences in auditing and other financial standards. These risks can be accentuated in emerging markets.}

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