Economic Review 17 August 2026

Economic data included gains in S&P manufacturing and services PMI, further into expansion, and a rise in new home sales, while durable goods orders and jobless claims remained stable.

Equities gained around the world last week generally, with technology optimism outweighing concerns about inflation and the resulting higher yields. Bonds fared negatively due to those influences of higher rates. Commodity prices were pulled down by energy and precious metals, as hope for a Middle East solution rose.

Last week’s news was highlighted by the U.S. Federal Reserve hiking interest rates a bit, for the first time in three years. Other data included positive results for retail sales and jobless claims, flattish industrial production, and declines in housing starts.

Stocks were mixed, but mostly down for the week, with higher yields and energy prices weighing on sentiment. Bonds were also mixed, as several central banks hiked short-term rates. Commodities saw gains in metals, while energy prices were stable.