Weekly Market Update – August 17, 2026

Price Return Last Week

S&P 500  +0.4% S&P Mid Cap  +1.1% Russell 2000  +1.1%

MSCI EAFE +0.5% MSCI EM +2.6%

10 Yr US Treasury Rate – rose from 4.66% to 4.70%

Source: Refinitiv Eikon

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Recent News

Earnings Season – Through Friday, approximately 91% of companies in the S&P 500 had reported Q2 earnings.  The year-over-year earnings growth rate stood at 49.6%, which represents the highest earnings growth rate since Q2 2021.  However, much of this can be attributed to technology companies reporting one-time earnings events due to increasing the value of their stakes in privately held companies they hold.  However, revenues are growing strong as well with the blended revenue growth rate for S&P 500 companies that have reported listed at 14.1% year-over-year, the highest rate since Q4 2021.

Source: FactSet, Refinitiv Eikon

Core CPI – Jul: 0.2% (Reuters Poll Est. 0.2%) Jun: 0.0%

Core inflation rose 0.2% in July, in agreement with economist expectations.  On a year-over-year basis, core inflation was reported at 2.5%, down slightly from June when it was reported at 2.6%.  Overall inflation is still running above the Federal Reserve’s 2% target and was reported at 3.4% year-over-year.  Much of this can be attributed to the increase in energy prices this year, with gasoline prices up 25% over the last twelve months.

Source: The Wall Street Journal

30-Year Treasury Rates Rise – The yield on a new sale of $25 billion of 30-year Treasury bonds hit 5.22% on Thursday.  This represents the highest rate on 30-year Treasury bonds since 2001.  Earlier in the week, an auction of 10-year Treasury bonds was also conducted and hit 4.68%, the highest recorded since 2007.

Source: Bloomberg, Refinitiv Eikon

Easy A – The University of Michigan announced that they will stop reporting grades for first-semester freshmen in the College of Literature, Science, and the Arts.  Instead, classes will only show “pass or no credit.”  The school claims this is being done to “curb the mental health crisis unfolding among college-aged individuals.”  Despite the grades not appearing on students’ transcripts, professors will still assign grades internally to confirm eligibility for scholarships and academic awards.

Source: The Wall Street Journal

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Upcoming Events

8/18 – Notable Earnings Reports: The Home Depot

8/19 – Notable Earnings Reports: Lowe’s, TJX

8/20 – Notable Earnings Reports: Wal-Mart

8/21 – S&P Manufacturing PMI, S&P Services PMI

Source: Refinitiv Eikon

Disclosure

This material, including references to specific securities, is for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security.       Views are as of the date shown and may change. Forecasts and forward-looking statements are not guarantees of future results. Information is believed reliable but not guaranteed for accuracy or completeness; third-party sources are not affiliated with Chesley, Taft & Associates (CTA).  Indexes are unmanaged, not investable, do not reflect fees or expenses, and shown for illustrative purposes only. Past performance is not indicative of future results. Viewing this material does not create an advisory relationship with CTA.