Market Report, 2026-08-13

Another day when stocks reached a new all-time high. This is the second day on which inflation data came out and reassured the market that stabilization is likely occurring at the moment, potentially allowing the Federal Reserve to delay a rate hike or even avoid one entirely. Nevertheless, as with all things economic, one data point does not establish a trend in any specific data series.

The Dow Jones Industrial Average, an index composed of some of the less interest-rate-sensitive companies at the moment, remained largely flat at 53,840. The NASDAQ rose 0.81% to 26,803. The S&P 500 gained 0.65% to 7,799. The communication services sector was the winner of the day, with its constituents broadly rallying. The real estate sector also rose significantly after bond yields declined moderately amid lower inflation expectations. Industrials, healthcare, and materials were the only sectors to post losses, albeit on a very small scale.

The U.S. 5-year Treasury yield declined by 6 basis points to 4.32%, and the 10-year yield dropped by 5 basis points to 4.65%.

It is notable that the presidents of regional Federal Reserve Banks with voting rights continue to maintain a hawkish stance, citing supply shocks, years of above-target inflation, and the possibility that inflation is likely to flatten out in the mid-2% range rather than decline to 2%. Therefore, the voting committee may continue to see a 9–3 divide, with the nine consisting of the Fed Chair, Governors, and the New York Fed President, while the three are regional Fed Presidents.

We will watch to see what tomorrow brings, and Adams Wealth Advisors will be back to summarize this week’s market for you.