Monthly Market Update - September 2026

Markets moved higher in August, led by technology stocks as strong corporate earnings and continued investment in artificial intelligence fueled investor optimism. The NASDAQ gained 4.24% for the month, outpacing the S&P 500 and Dow Jones Industrial Average, while software and semiconductor companies benefited from growing AI-related demand.

Fixed income markets also posted positive returns, supported by attractive yields despite slightly higher interest rates. Meanwhile, economic data reflected a resilient economy, with solid consumer spending, moderating inflation, and a stable labor market helping to reinforce confidence and support market gains.

As always, please reach out with any questions. We are here to support you and help you stay aligned with your long-term financial goals. 

Stocks

Stocks rallied in the month of August, with the tech-oriented NASDAQ index leading the way, rising 4.24% on the month, followed by the S&P 500, and Dow Jones. Continued earnings growth was the primary driver of returns, as investors responded positively to year-over-year earnings growth of more than 50%. Oil prices rose slightly for the month, despite significant intra-month volatility driven by shifting rhetoric surrounding the conflict in the Middle East. Interest rates followed the same pattern as oil prices, ending the month slightly up, allowing earnings to shine through as the main driver of equity returns for the month. Earnings from artificial intelligence companies particularly drove stock prices higher for many companies in the software and semiconductor spaces.

Sector Performance

The rally in August was mixed, with only five of the eleven sectors rising by the end of the month. Some of the best performing sectors were tech, and materials, which both benefited from the buildout of AI datacenters, and saw earnings rise rapidly. Some of the worst sectors on the month were utilities and real estate as investors pivoted away from interest rate sensitive sectors and into more durable growth areas of the stock market. Year-to-date, however, all eleven sectors are flat or positive, highlighting the broad strength of the equity market despite geopolitical turmoil that characterized the start of the year, as well as higher inflation, and a new Federal Reserve Chairman, Kevin Warsh.    

Bonds

Fixed income markets rose despite marginally higher interest rates for the month of August. Interest rates and prices are negatively correlated, when interest rates go up, bond prices fall, but in August the sheer size of the yield earned by fixed income investors offset a very slight rise in interest rates. The new Federal Reserve (Fed) Chairman was the star of the show for bonds this month, as investors tried to parse out what the path for interest rates will be, and whether or not the Fed will hike interest rates to combat inflation. The Fed maintains a 2% inflation target, but inflation has now remained above that level for 65 consecutive months, suggesting higher interest rates may be necessary if inflationary pressures persist.

Economic Update

Economic data released in August was mixed, painting a picture of an economy that remains resilient, but is not without its blemishes. Gross Domestic Product (GDP) came in at 1.5%, the same as initial estimates in its first revision. This is below the 2% economic growth trend, but the details of the report showed stronger than anticipated consumer spending and business investment that held up. On the flip side, the economy showed a net job loss for the previous month, declining by -23,000 jobs, while the unemployment rate fell to 4.1%. This meant that the size of the labor force shrunk, as opposed to a significant amount of people leaving the labor force. Importantly, inflation this month did show signs of progress, with the Consumer Price Index coming back down to 3.4%. That figure is still elevated, but it is moving in the right direction, towards the 2% target. 

Nepal has achieved a major conservation milestone, with its tiger population growing to 429, more than triple the 121 tigers recorded in 2009. The country became the first to meet a global commitment to double tiger numbers by 2022, demonstrating the impact of strong conservation policies, scientific management, and anti-poaching efforts. Globally, tiger populations have rebounded from approximately 3,200 in 2010 to around 5,500 today.

Conservation leaders are celebrating this achievement while emphasizing the need for continued action to address ongoing threats from poaching and habitat loss. Nepal’s success serves as an inspiring example of how dedicated conservation efforts can help endangered species recover. 

To learn more about this incredible story, read the full article here.

THOUGHT FOR THE MONTH

^{Index Definitions}

^{Dow Jones Industrial Average:The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities.}

^{Dow Jones U.S. Real Estate Total Return Index:The index is designed to track the performance of real estate investment trusts (REIT) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies.}

^{NASDAQ Composite:The NASDAQ Composite is a market-cap weighted index of all issues listed on the Nasdaq stock exchange. It is heavily weighted towards the technology sector.} 

^{S&P 500 Bond Index:The S&P 500® Bond Index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap U.S. equities. Market value-weighted, the index seeks to measure the performance of U.S. corporate debt issued by constituents in the iconic S&P 500.}

^{S&P 500 Consumer Discretionary:The S&P 500® Consumer Discretionary comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer discretionary sector.}

^{S&P 500 Consumer Staples:The S&P 500® Consumer Staples comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer staples sector.}

^{S&P 500 Energy:The S&P 500® Energy comprises those companies included in the S&P 500 that are classified as members of the GICS® energy sector.}

^{S&P 500 Financials:The S&P 500® Financials comprises those companies included in the S&P 500 that are classified as members of the GICS® financials sector.}

^{S&P 500 Index:The S&P 500® index is a market-cap weighted index of the largest 500 companies headquartered in the United States. The index covers approximately 80% of available market capitalization.}

^{S&P 500 Utilities:The S&P 500® Utilities comprises those companies included in the S&P 500 that are classified as members of the GICS® utilities sector.}

^{S&P U.S. Aggregate Bond Index:The S&P U.S. Aggregate Bond Index is designed to measure the performance of publicly issued U.S. dollar denominated investment-grade debt. The index is part of the S&P AggregateTM Bond Index family and includes U.S. treasuries, quasi-governments, corporates, taxable municipal bonds, foreign agency, supranational, federal agency, and non-U.S. debentures, covered bonds, and residential mortgage pass-throughs.}

^{S&P U.S. Treasury Bond Index:The S&P U.S. Treasury Bond Index is a broad, comprehensive, market-value weighted index that seeks to measure the performance of the U.S. Treasury Bond market.}

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