U.S. large-cap stocks, as proxied by the S&P 500 Index, gained 2.7%, while U.S. small-cap stocks gained 1.0% over the month. U.S. intermediate-term bonds ended the month up 0.4%.
With more than 97% of S&P 500 companies reporting, second-quarter earnings growth has reached 52%, the strongest since 2021, and profit margins are on track to hit a record 17%.
NVIDIA announced that quarterly revenue hit a record $96 billion, up 106% year-over-year, and management projected 70% revenue growth over the next fiscal year.
Federal Reserve Chair Kevin Warsh used the economic symposium in Jackson Hole to reaffirm his opposition to forward guidance and quantitative easing, and he described the economy as fundamentally healthy while acknowledging inflation remains above target.
The path for longer-term rates remains unusually uncertain, reinforcing our preference for assets with attractive risk/reward potential across a broad range of outcomes, and we generally favor an allocation geared toward higher nominal growth.
August 2026 Commentary: Hiking in Jackson Hole
Summary
Read and download the commentary here.
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