August 2026 Market Update

The market barely moved in July, but the action underneath the surface tells the real story. The leadership that carried stocks all spring finally cracked, and steadier parts of the market stepped up to carry the load.

The clearest signal this month is a change in character. The economy is handing off from early-cycle to mid-cycle, the phase where the market stops asking who can grow and starts asking who can sustain it. Semiconductors had their worst month in over a decade, down roughly 18%, yet the S&P still finished green because energy, financials, staples, and health care picked up the slack. Money rotated rather than left. Meanwhile, inflation cooled meaningfully as energy rolled off, with headline CPI easing to 3.5%, and a hawkish Fed under Kevin Warsh held rates on a 9-3 vote, making clear it won't declare victory early.

Our August 2026 Market & Economic Review breaks it all down, including our full cycle scorecard, the July rotation across equity sectors, the bond market's bear-steepener, and the three key takeaways from our Centralized Investment Committee.

Read the full report below.

The commentary, data, and visuals provided are not intended to be investment advice. Please seek the advice of an independent financial advisor for your personal financial decisions.