Market Report, 2026-08-12

Stocks advanced as the inflation report came out without any surprises. One of the most important gauges, the less volatile composite of goods prices, rose only 0.2%, bringing the year-over-year measure to 2.5%. This reading potentially gives the Federal Reserve more room to maneuver and may allow it to avoid hiking rates at its September policy meeting. The market continues to price in at least one rate hike because the overall gauge still stands solidly above the target at 3.4% year over year.

The Dow Jones Industrial Average remained practically flat at 53,770. The NASDAQ rose 0.54% to 26,588. The S&P 500 rose 0.26% to 7,749. Technology stocks were the primary winners of the day, with a one-and-a-half-percent gain. Communication services, consumer discretionary, and materials were the only sectors to end the day in the red.

The bond market stayed largely flat, as the long-term trajectory was not affected by a single inflation report. The 5-year U.S. Treasury yield declined by 1 basis point to 4.38%, while the 10-year yield stayed flat at 4.69%. The price of gold also barely moved, sitting slightly below the 4,500 mark.

Let’s review some of the earnings reports from yesterday. Earnings calls for companies operating in the chip and cloud sectors continued to show that AI-related spending is accelerating, with Super Micro Computer raising its guidance, CoreWeave beating expectations that were already on the loftier side, and Chinese tech giant Tencent posting a revenue beat driven by its cloud and AI initiatives.

Tomorrow, the producer-side inflation report will be released, and Adams Wealth Advisors will continue to provide updates.