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Weekly Market Update – August 3, 2026

Price Return Last Week

S&P 500  +1.1% S&P Mid Cap  (0.6%) Russell 2000  +0.1%

MSCI EAFE +2.0% MSCI EM +2.3%

10 Yr US Treasury Rate – rose from 4.68% to 4.75%

Source: Refinitiv Eikon

Recent News


Diplomacy in Iran – Despite recent warnings of additional attacks on Iran, President Trump changed course over the weekend and stated that the U.S. would reengage peace talks with Iran on Monday.  The price of oil was down approximately 5% in early trading on Monday and stock indices rose.

Source: The Wall Street Journal


U.S. Buys Yen – For the first time since 1998, the United States bought Japanese yen to help support the currency in the open market.  The Japanese currency had hit a low of 164 to one dollar, the weakest the currency had been since 1986.  In response to the move, President Trump stated “they wanted a little bit of help and we’re always there for Japan.”  By supporting the currency, the U.S. hopes to avoid a rapid destabilization of foreign exchange markets and reduce the likelihood that Japan will be forced to sell U.S. Treasury bonds to prop up their currency.  A stronger yen also makes it more likely that Japanese firms will be able to fulfill their planned investment of $550 billion in the U.S. as outlined in the trade pact between both countries last year.

Source: The Wall Street Journal


Fed Stands Pat – After a vote of 9-3, the Federal Reserve chose to leave interest rates unchanged in their most recent meeting.  The three dissenters voted to increase rates by 25 basis points.  In comments after the meeting, Fed Chair Kevin Warsh stated, “This Fed will not waver.”  Holding steady on interest rates now seems to increase the likelihood of an increase at the next Fed Meeting in September with market-based indicators estimating a greater than 65% chance of a hike at that time as of Monday morning.

Source: Thomson Reuters, Refinitiv


Trade Deadline – August 3 marks the deadline for all Major League Baseball teams to make any trades for this season.  The current high for most trades made on the day of the deadline occurred last year where 35 trades took place on the final day.  In contrast to what fans might have seen in Moneyball, most discussions nowadays are reportedly done via text message with former Twins General Manager Derek Falvey recalling that he has previously received a simple “☹” in response to an unsuccessful trade proposal. 


Upcoming Events


8/3 – ISM Manufacturing PMI, Notable Earnings Reports: Vertex Pharmaceuticals, Palantir


8/4 – Notable Earnings Reports: Caterpillar, Kimberly-Clark, McDonald’s, Merck, NRG Energy, Pfizer, Waters Corp, Aptiv, AMD, Amgen, Gilead Sciences, Booking Holdings, Arista Networks


8/5 – ISM Non-Manufacturing PMI, Notable Earnings Reports: Walt Disney, Eli Lilly, CDW, Uber, Albemarle, Expedia Group, MetLife, Occidental Petroleum, Western Digital, Applovin, Honeywell, Allstate, Sandisk


8/6 – Notable Earnings Reports: Becton Dickinson, Fiserv, Zoetis, Constellation Energy, Kenvue, Aflac, AIG, Akamai


8/7 – Jobs Report, Notable Earnings Reports: Vistra

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.

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