Global Stocks Mark Time After Inflation Data as US Tech Gains Offset Broader Weakness

Equity markets around the world entered a holding pattern after the latest batch of US inflation data came in slightly hotter than economists expected. The figures, released on August 26, reinforced the view that the Federal Reserve may keep interest rates elevated for longer, leaving investors reluctant to chase risk aggressively.

On Wall Street, the S&P 500 finished close to flat, while the Dow Jones Industrial Average slipped modestly. The tech‑heavy Nasdaq Composite, however, climbed more than 1%, powered by heavyweight chipmaker Nvidia and other large‑cap growth names. Under the surface, breadth was weak, with a majority of S&P 500 constituents actually falling on the day — a reminder that the rally remains narrow and concentrated.

In Europe, political noise added another layer of caution. Investors watched French markets warily ahead of the first televised presidential debate and amid uncertainty over the Socialist Party’s upcoming budget demands for 2027. Commodity trading was similarly indecisive: gold and industrial metals such as copper swung within relatively tight ranges, caught between shifting expectations for US rates and moves in energy prices.

With the Federal Reserve’s annual Jackson Hole symposium and key US labor data looming, many portfolio managers appear content to trim risk and wait. The current phase looks less like a decisive trend and more like a consolidation period, as markets balance hopes for cooling inflation against the possibility that “higher for longer” remains the central bank’s base case.