MarketWatch for August 2026
August saw global equities deliver positive returns, supported by resilient economic data and encouraging corporate earnings, particularly within the technology sector. Emerging markets outperformed developed markets as a weaker US dollar, stronger commodity prices and a recovery in technology stocks boosted sentiment. Bond markets faced further pressure as yields continued to rise amid inflation concerns and uncertainty over central bank policy, while commodities gained on agricultural supply worries and elevated energy prices.
Global equity markets moved higher in August, supported by resilient economic data and some strong quarterly earnings from technology companies.
United States
In the US, the S&P 500 rose, led by the information technology and materials sectors. Strong earnings from several technology companies – including those related to the artificial intelligence theme – helped tech stocks recover from the weakness seen in July.
Europe
Eurozone stocks edged higher amid gains for the information technology, communication services and financials sectors. More defensive areas of the market tended to underperform.
United Kingdom
UK shares made a small gain. The basic materials sector outperformed while health care, consumer staples and energy posted negative returns.
Japan
Japanese stocks rose amid a weaker yen and some solid quarterly earnings results.
Emerging Markets
Emerging market (EM) equities posted positive returns in US dollar terms, outperforming developed market peers as measured by the MSCI World index, with strong returns from South Africa, Korea and Taiwan. A tech-led rebound, a weaker US dollar and commodity strength supported positive returns from the EM index. This helped offset the impact of an escalation in the Middle East conflict, which kept oil prices volatile Meanwhile, the focus on rising global bond yields had a more muted impact in EM than developed markets.
Fixed Income
Challenges to global bond markets grew in August. Bond yields generally rose again (moving opposite to price) amid resilient inflation data, elevated energy prices, and softer activity data. This was complicated further by uncertainty around central bank reactions.
Commodities
Commodities gained with the agriculture component strong amid concerns over the potential impact of the El Niño climate pattern.
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