Weekly Market Update: August 31, 2026

Market Update
Written By Trey Kerns

Week Ending August 28, 2026:

S&P 500: +0.77%
NASDAQ Composite: +1.63%
Dow Jones Industrial Average: +0.27%

Market Takeaway

U.S. equity markets finished the week ending August 28 higher, with all three major indices posting gains.

The S&P 500 rose 0.77%, the NASDAQ Composite gained 1.63%, and the Dow Jones Industrial Average increased 0.27%. Technology was the strongest-performing sector based on the sector data reviewed, while Consumer Staples posted the largest decline.

Quarterly results from NVIDIA, Salesforce, CrowdStrike, and Dollar General exceeded the earnings and revenue estimates provided. Economic reports were mixed. New home sales declined, durable-goods orders increased, consumer expectations weakened, and private domestic demand was revised higher in the second-quarter GDP report.

PCE inflation increased in July and remained above the Federal Reserve’s 2% target on a year-over-year basis. Federal Reserve Chairman Kevin Warsh also discussed inflation, economic activity, monetary-policy communication, and artificial intelligence during remarks at the Jackson Hole Economic Policy Symposium.

Overall, the week included gains across the major indices, strength in Technology, mixed economic data, and continued attention on inflation and monetary policy.

Thematic Drivers of the Week

1. Technology Earnings and Sector Leadership

What happened:

NVIDIA, Salesforce, and CrowdStrike reported earnings and revenue above the estimates provided. The S&P Technology Select Sector Index gained approximately 3.14% for the week.

Why it mattered:

The reports provided additional information about technology-sector results and spending connected to artificial intelligence, cloud infrastructure, enterprise software, and cybersecurity.

Market reaction:

Technology finished as the strongest-performing sector based on the data reviewed. The NASDAQ Composite gained 1.63%, the largest weekly increase among the three major indices.

2. Inflation and Federal Reserve Commentary Remained in Focus

What happened:

The PCE price index increased 0.2% in July and 3.7% from one year earlier. Core PCE, excluding food and energy, increased 0.2% for the month and 3.3% year over year.

Federal Reserve Chairman Kevin Warsh described labor-market conditions as stable and economic activity as solid while stating that inflation remained above the Federal Reserve’s 2% target. He also discussed forward guidance and the possible economic effects of artificial intelligence.

Why it mattered:

PCE is an inflation measure monitored by the Federal Reserve. Chairman Warsh’s remarks provided additional information about his views on inflation, employment, economic activity, and monetary-policy communication.

Market reaction:

The major indices finished higher for the week, although the market tone became more cautious as investors evaluated the economic reports and Federal Reserve commentary.

3. Economic Reports Provided Mixed Information

What happened:

New home sales declined 10.5% in July, while the supply of available new homes increased. Consumer confidence edged lower as assessments of current conditions improved but expectations weakened.

Durable-goods orders increased 1.1%. Second-quarter GDP growth remained at an annualized rate of 1.5%, while real final sales to private domestic purchasers were revised higher to 4.2%.

Why it mattered:

The reports did not move in the same direction. Housing demand weakened, manufacturing orders increased, and the GDP report showed slower headline growth alongside stronger private domestic demand.

Market reaction:

The mixed reports added to the information investors evaluated during the latter part of the week.

Sector Performance

Best-Performing Sector: Technology

The S&P Technology Select Sector Index gained approximately 3.14% for the week. Technology’s performance coincided with quarterly results from NVIDIA, Salesforce, and CrowdStrike that exceeded the earnings and revenue estimates provided.

The sector’s results provided additional information about activity connected to artificial intelligence, cloud infrastructure, enterprise software, cybersecurity, and data-center investment.

Worst-Performing Sector: Consumer Staples

Consumer Staples posted the largest decline among the sectors reviewed. The sector’s weekly performance contrasted with the gains recorded by the major U.S. equity indices.

Earnings Recap: Key Companies in Focus

NVIDIA (NVDA) - Reported August 26

Results:

  • Estimated EPS: $2.09

  • Actual EPS: $2.22

  • Result: Beat by 6.16%

  • Revenue: Beat by 4.40%

Takeaway:

NVIDIA reported earnings and revenue above the estimates provided. The results added another data point on reported demand connected to AI computing and data-center infrastructure.

Salesforce (CRM) - Reported August 26

Results:

  • Estimated EPS: $3.27

  • Actual EPS: $5.90

  • Result: Beat by 80.36%

  • Revenue: Beat by 0.25%

Takeaway:

Salesforce reported earnings and revenue above the estimates provided. The results provided additional information about enterprise software activity.

CrowdStrike (CRWD) - Reported August 26

Results:

  • Estimated EPS: $0.29

  • Actual EPS: $0.31

  • Result: Beat by 6.38%

  • Revenue: Beat by 2.26%

Takeaway:

CrowdStrike reported earnings and revenue above the estimates provided. The report offered another view of cybersecurity and enterprise technology activity.

Dollar General (DG) - Reported August 27

Results:

  • Estimated EPS: $2.01

  • Actual EPS: $2.23

  • Result: Beat by 10.84%

  • Revenue: Beat by 0.85%

Takeaway:

Dollar General reported earnings and revenue above the estimates provided.

Major Economic Reports Recap

New Home Sales - Released August 25

New home sales declined 10.5% in July to a seasonally adjusted annual rate of 607,000, compared with 678,000 in June.

The number of new homes available for sale increased to 488,000, representing a 9.6-month supply. The median sales price declined to $393,800.

Economic Takeaway:

New home sales declined in July, while available inventory and the months’ supply of homes increased.

Consumer Confidence - Released August 25

The Consumer Confidence Index declined from 90.2 in July to 89.4 in August.

The Present Situation Index increased from 114.4 to 121.2, while the Expectations Index declined from 74.0 to 68.2.

Economic Takeaway:

Consumers’ views of current conditions improved, while expectations for future business, labor-market, and income conditions weakened.

Durable Goods Orders - Released August 26

New orders for manufactured durable goods increased 1.1% in July to $339.3 billion, following a 0.5% increase in June.

Orders excluding transportation increased 0.4%, while orders excluding defense increased 1.3%. Nondefense capital-goods orders excluding aircraft increased 0.2%.

Economic Takeaway:

Durable-goods orders increased in July, including a smaller increase in the measure used to track business-equipment demand.

Second Estimate of Second-Quarter GDP - Released August 26

Real GDP increased at an annualized rate of 1.5% during the second quarter, unchanged from the advance estimate and below the first quarter’s 2.1% rate.

Real final sales to private domestic purchasers increased 4.2%, revised higher from the initial 3.9% estimate. Consumer spending and imports were both revised higher.

Economic Takeaway:

Economic growth slowed from the first quarter, while private domestic demand was revised higher.

PCE Inflation - Released August 26

The PCE price index increased 0.2% in July and 3.7% from one year earlier.

Core PCE increased 0.2% for the month and 3.3% year over year. Personal income increased 0.4%, consumer spending increased 0.2%, and inflation-adjusted spending was nearly unchanged.

Economic Takeaway:

Headline and core PCE prices increased 0.2% in July, while inflation-adjusted consumer spending changed little.

Technical Perspective

Based on the technical notes provided:

  • The S&P 500 remained above its 50-day and 200-day moving averages

  • The NASDAQ Composite remained above its 50-day and 200-day moving averages

  • The Dow Jones Industrial Average remained above its 50-day and 200-day moving averages

  • All three indices remained near their recent highs

  • The VIX ended the week at 14.43

Interpretation:

All three indices remained above their intermediate- and longer-term moving averages based on the technical information provided.

The VIX ended the week at 14.43. Technical indicators can help provide context, but they do not predict what markets will do next.

Key Takeaways for Investors

  • The S&P 500, NASDAQ Composite, and Dow Jones Industrial Average finished higher

  • Technology led the sectors reviewed, while Consumer Staples posted the largest decline

  • NVIDIA, Salesforce, CrowdStrike, and Dollar General reported earnings and revenue above the estimates provided

  • Housing demand weakened while durable-goods orders increased

  • Consumer views of current conditions improved, but expectations declined

  • Second-quarter GDP growth remained at 1.5%, while private domestic demand was revised higher

  • Headline and core PCE inflation increased 0.2% in July

  • Chairman Warsh stated that inflation remained above the Federal Reserve’s 2% target

Looking Ahead

Earnings to Watch This Week

Dell Technologies (DELL) - September 1

Dell Technologies is scheduled to report quarterly results Tuesday after the market closes. The report can provide information about servers, networking, storage, personal computers, AI-optimized systems, and hardware margins.

Palo Alto Networks (PANW) - September 1

Palo Alto Networks is scheduled to report fiscal fourth-quarter and full-year results Tuesday after the market closes. The report can provide information about cybersecurity demand, recurring revenue, remaining performance obligations, and operating results.

Broadcom (AVGO) - September 2

Broadcom is scheduled to report quarterly results Wednesday after the market closes. The report can provide information about semiconductor demand, custom AI accelerators, data-center networking products, and infrastructure software.

Snowflake (SNOW) - September 2

Snowflake is scheduled to report fiscal second-quarter results Wednesday. The report can provide information about product revenue, customer consumption, remaining performance obligations, and cloud-based data services.

Lululemon Athletica (LULU) - September 3

Lululemon is scheduled to report fiscal second-quarter results Thursday. The report can provide information about comparable sales, consumer demand, regional performance, and retail margins.

Economic Data to Watch

ISM Manufacturing PMI - September 1

The August report can provide information about manufacturing activity, new orders, production, employment, and prices.

Job Openings and Labor Turnover Survey - September 1

The July JOLTS report can provide information about job openings, hiring, quits, and layoffs.

ISM Services PMI - September 3

The August report can provide information about business activity, new orders, employment, and prices across the services sector.

Employment Situation - September 4

The August employment report will include nonfarm payrolls, the unemployment rate, labor-force participation, average hourly earnings, and revisions to prior payroll estimates.

Federal Reserve and Policy Notes

No Federal Reserve policy meeting or FOMC minutes are scheduled for the week.

The Federal Reserve’s Beige Book is scheduled for release on Wednesday, September 2. The report will summarize economic conditions across the 12 Federal Reserve districts.

The next scheduled FOMC meeting is September 15-16, 2026.

Sources

Disclosure: This market update is for informational and educational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Market data and company results are subject to revision and interpretation. Past performance does not guarantee future results. Investing involves risk, including the potential loss of principal.

Trey Kerns https://KernsLegacyPlanning.com
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