Market Report, 2026-08-14

Stocks continued to push up and to the right this week as bets on Federal Reserve interest-rate hikes faded. Multiple pieces of economic data came out demonstrating non-accelerating inflation, including the two inflation reports themselves and today’s retail sales report, which showed a significant decline. Combined with last week’s jobs report, the data led the market to bet that the Federal Reserve will become less hawkish, as the economy may not be as heated as previously believed. Nevertheless, on Friday, the stock market experienced a slight pullback because consumers appeared weak enough to counteract hopes for a pivot in monetary policy.

The Dow actually declined by half a percentage point this week because of its high concentration of large companies, while speculation about monetary policy helped relatively smaller stocks. The NASDAQ rose 0.42%, driven by a few chipmakers that are critical to the AI supply chain. The S&P 500 rose 0.34%, reflecting a more balanced weighting of stocks.

The bond market barely moved this week. The 5-year U.S. Treasury yield stayed flat at 4.36%, while the 10-year yield rose by 3 basis points to 4.69%. Gold also held steady at just above the 4,400 mark.

While the two inflation reports have shown moderating inflation in July, the University of Michigan consumer survey showed that consumers expect persistently high inflation in the coming years. They are now increasingly concerned about inflation but less concerned about employment.

Some real estate and industrial data will be released next week. The minutes from the Federal Reserve’s July meeting will also be published. Adams Wealth Advisors wishes you an enjoyable weekend, and we will continue to update you next week.