Stocks Upbeat on AI; Warsh: “Less is More.” – Weekly Update
August 31, 2026 | By Steven DiGregorio
Stocks rebounded last week as falling bond yields and upbeat AI-related corporate reports rekindled positive market sentiment despite the Fed Chair’s slightly hawkish speech.
The Standard & Poor’s 500 Index gained 0.49 percent, while the Nasdaq Composite Index rose 0.85 percent. The Dow Jones Industrial Average added 0.53 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 0.17 percent.1,2
An Active News Week
Chip stocks fell as the week kicked off, dragging down the S&P 500 and Nasdaq. Reports that the Treasury Department may buy back its own bonds helped drive yields lower.3,4
Midweek, the Personal Consumption Expenditures (PCE) Report, the Fed’s preferred inflation gauge, came in a little hotter than expected. However, core PCE, which excludes food and energy, was in line with forecasts.5
Market sentiment got a lift on Thursday as investors cheered upbeat Q2 corporate reports. A handful of high-profile tech companies said AI helped drive Q2 results and provided strong guidance. Semiconductor stocks and adjacent names in the AI trade led the rebound, driving broader gains for the Nasdaq and S&P 500.6
On Friday, stocks initially shrugged off Fed Chair Kevin Warsh’s keynote speech, but sellers gained the upper hand later in the session. Short- and intermediate-term Treasury yields, including that of the bellwether 10-year Treasury note, rose as investors digested Warsh’s comments on inflation.7
Source: YCharts.com, August 29, 2026. Weekly performance is measured from Monday, August 24 to Friday, August 28. 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.
Signals from Jackson Hole
At the Federal Reserve’s 2026 Economic Policy Symposium in Jackson Hole, Fed Chair Warsh expressed concerns about current inflation trends. He also said that he believes “less is more” when it comes to the Fed communicating about future policy moves.
In separate speeches, Cleveland Fed President Beth Hammack, Dallas Fed President Lorie Logan, and Minneapolis Fed President Neel Kashkari appeared to support higher short-term rates. Fed Governor Christopher Waller, Kansas City Fed President Jeffrey Schmid, and Vice Chair Philip Jefferson also took a modestly hawkish tone in their statements.8
This Week: Key Economic Data
Tuesday: Purchasing Managers Index (PMI)—Manufacturing. Construction Spending. Job Openings & Labor Turnover Survey.
Wednesday: ADP National Employment Report (private sector). Factory Orders. Federal Reserve Beige Book.
Thursday: Trade Balance. Weekly Jobless Claims. Purchasing Managers Index (PMI)—Services. Fed speeches, ‘Connecting Communities’ online event: Beth Hammack (Cleveland), Austan Goolsbee (Chicago).
Friday: U.S. Employment Report.
Source: Investor’s Business Daily – Econoday economic calendar: August 28, 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: Dell Technologies Inc. (DELL), Palo Alto Networks, Inc. (PANW), Medtronic (MDT)
Wednesday: Broadcom Inc. (AVGO), Snowflake Inc. (SNOW), Hewlett-Packard Enterprise Company (HPE)
Thursday: Ciena Corporation (CIEN)
Source: Zacks, August 28, 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.
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The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
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Tags: AI, DJIA, Inflation, NASDAQ, PCE, S&P 500
