Inflation Cools Again; S&P Up Third Week – Weekly Update
August 17, 2026 | By Steven DiGregorio
Stocks were mixed over a sleepy summer week, as cooling inflation lifted markets while sluggish retail sales nipped at investor sentiment.
The Standard & Poor’s 500 Index added 0.36 percent, while the Nasdaq Composite Index edged up 0.14 percent. The Dow Jones Industrial Average slid 0.56 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, advanced 0.26 percent.1,2
Third Straight for S&P 500
Stocks began the week with mild declines, with megacap tech names under pressure as investors anxiously awaited inflation updates.3
But spirits lifted midweek as a July inflation report showed consumer prices increased at a slower pace, leading investors to hope the Fed would not adjust rates at its next meeting.
The AI trade also jumped back into the driver’s seat to add momentum. The rebound rally extended into Thursday as investors cheered a cooler-than-expected report that showed wholesale inflation slowed over the prior month. Falling oil prices also gave stocks a boost.4,5
While stocks slipped slightly on Friday, the S&P 500 and Nasdaq each logged their third consecutive winning week.6
Source: YCharts.com, August 15, 2026. Weekly performance is measured from Monday, August 10 to Friday, August 14. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
Inflation Cools, Spending Slows
Wednesday’s Consumer Price Index (CPI) report showed consumer prices rose 0.1 percent in July over the prior month and 3.4 percent over the prior 12 months. Both figures came in as expected, which was welcomed news for investors.
Thursday’s Producer Price Index (PPI) showed that the pace of wholesale inflation also slowed more than expected.7
But the inflation update was somewhat countered by news that consumers spent less in July. Economists expected a 0.1 percent increase in July retail sales over the prior month, but they actually fell 0.6 percent month-over-month.8
This Week: Key Economic Data
Monday: NAHB Housing Market Index.
Tuesday: Housing Starts. Import Prices. Industrial Production. Capacity Utilization. Pending Home Sales.
Wednesday: Fed Meeting Minutes from July published.
Thursday: Weekly Jobless Claims. Leading Indicators.
Friday: Purchasing Managers Index (PMI)—Manufacturing. PMI—Services.
Source: Investor’s Business Daily – Econoday economic calendar: August 14, 2026.
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.
This Week: Companies Reporting Earnings
Tuesday: The Home Depot, Inc. (HD), Keysight Technologies Inc. (KEYS)
Wednesday: Analog Devices, Inc. (ADI), The TJX Companies, Inc. (TJX), Lowe’s Companies, Inc. (LOW), Target Corporation (TGT)
Thursday: Walmart Inc. (WMT), Deere & Company (DE), Ross Stores, Inc. (ROST)
Source: Zacks, August 14, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.
Footnotes And Sources
1. WSJ.com, August 14, 2026
2. Investing.com, August 14, 2026
3. CNBC.com, August 11, 2026
4. CNBC.com, August 12, 2026
5. CNBC.com, August 13, 2026
6. WSJ.com, August 14, 2026
7. CNBC.com, August 12, 2026
8. WSJ.com, August 14, 2026
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues.
We love being introduced!
The content of this article is for informational purposes only and is not intended as an offer of investment advice, investment strategy or to buy, transfer or sell any security or other investment vehicle. Information contained herein has been obtained from sources deemed reliable but Spire Wealth Management LLC, Spire Securities LLC and their affiliates, including Compass Asset Management Group LLC, do not guarantee its accuracy. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions of Spire Wealth Management LLC, Spire Securities LLC or its affiliates.
Compass Asset Management Group does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
Spire Wealth Management LLC is a federally Registered Investment Advisor. Securities offered through an affiliate, Spire Securities LLC. Member FINRA/SIPC
By accessing any links contained in this article you will be leaving Spire Wealth Management LLC & its affiliates and Compass Asset Management Group LLC websites and entering a website hosted by another party. Although Spire Wealth Management LLC & its affiliates and Compass Asset Management Group LLC have approved these as reliable partner sites, please be advised that you will no longer be subject to, or under the protection of, the privacy and security policies of Spire Wealth Management LLC & its affiliates Compass Asset Management Group LLC websites. The other parties are solely responsible for the content of their websites. We encourage you to read and evaluate the privacy and security policies on the sites you are entering, which may be different than those of Spire Wealth Management LLC & its affiliates Compass Asset Management Group LLC.
Diversification does not guarantee profit nor is it guaranteed to protect assets.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.
The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.
The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia, and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
By clicking on these links, you will leave our server, as the links are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest.
Tags: AI, DJIA, Inflation, Megacaps, NASDAQ, S&P 500
