U.S. stocks posted strong gains in August, supported by another solid corporate earnings season and continued economic resilience. Technology companies benefited from strong demand related to artificial intelligence and data-center investment, although performance among the largest companies remained mixed. Oil and other energy prices edged higher amid continued tensions between the U.S. and Iran. Inflation moderated but still remains above the Federal Reserve’s (Fed) target, and the labor market showed signs of softening, complicating the Fed’s policy outlook.
International stocks also advanced in August but trailed their U.S. counterparts. European markets benefited from renewed strength in technology stocks, while Japanese stocks performed particularly well amid broad gains across sectors. Emerging markets surged, led by technology-heavy Asian markets and supported by a weaker U.S. dollar.
Bonds ticked up in August despite continued pressure on longer-term government bond yields. Concerns about government borrowing, growing fiscal deficits, and persistent inflation kept yields elevated, particularly at the long end of the curve. The U.S. Treasury announced plans to increase its purchases of longer-dated securities through its buyback program in an effort improve market liquidity and help alleviate upward pressure on yields, however the impact was limited as long term yields remain elevated. At the Jackson Hole conference, Fed Chair Kevin Warsh emphasized that inflation remained a concern, raising the likelihood of a near term interest rate increase.
Markets enter the fall with a combination of monetary, geopolitical, and political uncertainty. The Fed is expected to raise the Fed funds rate, although incoming inflation and labor-market data could influence its decision. Continued tensions between the United States and Iran may keep energy prices volatile, while the approaching midterm elections could bring greater attention to fiscal policy. Maintaining a diversified approach remains important as markets navigate a range of potential outcomes.
Index Performance
August
Year-to-Date
Trailing 12 Months
U.S. Stocks (Russell 3000)
2.74%
13.37%
20.10%
International Stocks (FTSE AW ex U.S.)
2.65%
17.02%
27.29%
U.S. Bond Market (BBgBarc Int. Gov/Cred)
0.20%
0.18%
1.80%
Cash (ICE BofA ML 3-Mo T-Bill)
0.28%
2.37%
3.71%
Source: Morningstar, Inc. as of 8/31/2026.
Disclosure: Past performance does not guarantee or predict future results. There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. You should not assume that any discussion or information contained in this market commentary serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Investment Advisers (“Raffa”). This information was gathered from reliable sources, but we cannot guarantee accuracy or completeness. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated. Raffa actively leverages Artificial Intelligence and Large Language Models within our operations. The use of such technologies, focusing on the safeguard of non-public personal information, protecting of trade secrets, verification of information accuracy, and other pertinent compliance considerations, is outlined in Raffa’s Compliance Manual and acknowledged by Raffa staff. All viewpoints and final content created was reviewed and approved by the Raffa team to verify accuracy, perspective, and compliance with our marketing guidelines.
August 2026 Market Commentary & Outlook
Market Commentary
U.S. stocks posted strong gains in August, supported by another solid corporate earnings season and continued economic resilience. Technology companies benefited from strong demand related to artificial intelligence and data-center investment, although performance among the largest companies remained mixed. Oil and other energy prices edged higher amid continued tensions between the U.S. and Iran. Inflation moderated but still remains above the Federal Reserve’s (Fed) target, and the labor market showed signs of softening, complicating the Fed’s policy outlook.
International stocks also advanced in August but trailed their U.S. counterparts. European markets benefited from renewed strength in technology stocks, while Japanese stocks performed particularly well amid broad gains across sectors. Emerging markets surged, led by technology-heavy Asian markets and supported by a weaker U.S. dollar.
Bonds ticked up in August despite continued pressure on longer-term government bond yields. Concerns about government borrowing, growing fiscal deficits, and persistent inflation kept yields elevated, particularly at the long end of the curve. The U.S. Treasury announced plans to increase its purchases of longer-dated securities through its buyback program in an effort improve market liquidity and help alleviate upward pressure on yields, however the impact was limited as long term yields remain elevated. At the Jackson Hole conference, Fed Chair Kevin Warsh emphasized that inflation remained a concern, raising the likelihood of a near term interest rate increase.
Markets enter the fall with a combination of monetary, geopolitical, and political uncertainty. The Fed is expected to raise the Fed funds rate, although incoming inflation and labor-market data could influence its decision. Continued tensions between the United States and Iran may keep energy prices volatile, while the approaching midterm elections could bring greater attention to fiscal policy. Maintaining a diversified approach remains important as markets navigate a range of potential outcomes.
U.S. Stocks (Russell 3000)
2.74%
13.37%
20.10%
International Stocks (FTSE AW ex U.S.)
2.65%
17.02%
27.29%
U.S. Bond Market (BBgBarc Int. Gov/Cred)
0.20%
0.18%
1.80%
Cash (ICE BofA ML 3-Mo T-Bill)
0.28%
2.37%
3.71%
Source: Morningstar, Inc. as of 8/31/2026.
Disclosure: Past performance does not guarantee or predict future results. There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. You should not assume that any discussion or information contained in this market commentary serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Investment Advisers (“Raffa”). This information was gathered from reliable sources, but we cannot guarantee accuracy or completeness. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated. Raffa actively leverages Artificial Intelligence and Large Language Models within our operations. The use of such technologies, focusing on the safeguard of non-public personal information, protecting of trade secrets, verification of information accuracy, and other pertinent compliance considerations, is outlined in Raffa’s Compliance Manual and acknowledged by Raffa staff. All viewpoints and final content created was reviewed and approved by the Raffa team to verify accuracy, perspective, and compliance with our marketing guidelines.