Week in Review: August 28, 2026

August 31, 2026

Recap & Commentary

Markets ended another relatively quiet week, largely unchanged. The week as not bereft of headlines, however, as the US announced new economic sanction against Iran, Fed Chair Kevin Warsh gave a highly anticipated speech at the Fed’s Jackson Hole meeting, and Nvidia released its much-anticipated earnings report. ​On Monday, the government announced a number of new sanctions designed to cut off all revenue streams for the Iranian government. Success will be determined in part by the willingness of other countries and institutions to participate, however, the US has threated secondary sanctions against those that do not abide.

​In his Jackson Hole speech, Fed Chair Warsh touched on multiple topics, none more important than forward guidance and inflation. On the former, Warsh said it can play an important role during times of crisis but currently the practice has “overstayed its welcome.” He also reiterated his belief that too much Fed guidance can distort market signals that the Fed and market participants rely upon for decision making. Regarding inflation, Warsh noted that current readings are well above the Fed’s 2% target. Further, he said the summer’s readings “do not tell me that underlying trends have meaningfully improved.” That was enough to raise market expectation for a September rate hike from 35% to 57%. ​

Nvidia reported fiscal second quarter 2027 results, beating both revenue and earnings expectations. Revenue increased 106% to $96.2B. For fiscal year 2028 (effectively calendar year 2027), Nvidia forecast revenue growth of 70%, far stronger than the consensus forecast of 45%. The report provided some renewed momentum for the AI trade.​

Economic Commentary

Core personal consumption expenditures (PCE), the Fed’s preferred inflation gauge, rose at an annual pace of 3.3% in July, the same pace recorded in June. Monthly core PCE readings have measured between 3.3% and 3.4% since the outbreak of fighting in March between the US and Iran. The stubbornly high readings vs. the Fed’s 2% target put further pressure on the Fed to raise rates in an effort to reduce inflation.

The second estimate of 2Q26 GDP growth remained unchanged at 1.5%. Growth was driven largely by consumer spending, with a smaller boost from business spending. Trade and government spending both detracted from the headline figure.

New home sales fell 10.5% in July to an annualized rate of 607K, a six-month low. Sales were down 6.3% from a year ago. Reflecting decreased demand, the median sales price declined 2.3% from June to $393.8K, its lowest level in five years. The data highlighted the ongoing challenges facing the housing sector.

Durable goods orders jumped 1.1% in July, following a 0.3% increase in June, led by a 2.3% increase in transportation orders. A more core measure of business spending rose just 0.2% suggesting subdued demand.

Consumer sentiment rebounded slightly in the second half of August, but sill came in below July’s reading. Ongoing uncertainty created by the Iran war increased expectations of further increases in gasoline prices.

On Note

Meta agreed to pay $18B to settle a lawsuit brought by 47 states arguing Meta’s social media content, including Facebook and Instagram, was designed to be addictive for kids. As part of the settlement, Meta agreed to multiple changes including daily time limits, eliminating push notifications during school hours, nighttime blocks, disabling certain filters, and limiting “like” counts.

Market Indices (As of 08/28/2026)

• August Employment Report​

• JOLTs Job Openings​

• ISM Manufacturing​

• ISM Services​

• Initial Jobless Claims​