S&P 500 notches new all-time high as inflation data calms rate hike fears

Stocks pushed to fresh record territory as tame inflation readings influenced sentiment regarding the possibility of a September Fed rate hike. 

Stocks

The S&P 500 opened the week near its all-time high but struggled to build on it Monday, slipping 0.06% on the day. Growing doubts that the US-Iran conflict would see a near-term resolution sent oil prices surging, renewing concerns about inflation and weighing on sentiment. Key tech names were among the day's laggards. On Tuesday, the selling accelerated, with the index dropping 0.32% as oil remained elevated and investors braced for Wednesday's Consumer Price Index (CPI) report. Treasury yields climbed as well, reflecting the market's unease heading into the data. Wednesday brought a significant reversal. The July CPI came in largely in line with expectations, rising 0.1% monthly and 3.4% annually. Major indexes extended their gains after the release, with the S&P 500 climbing back into positive territory. Thursday saw the momentum carry through, powered by a flat Producer Price Index (PPI) reading that further fueled expectations the Fed would hold rates steady in September. Memory chip stocks led the advance, and the S&P 500 closed Thursday at 7,799.73, a new record high, while the Nasdaq gained 0.81% on the day. On Friday, the market pulled back slightly, but closed the week in the green. Overall, communications, energy minerals, and consumer durables were the top-performing sectors during the week, while retail trade, non-energy minerals, and distribution services lagged.

Bonds
US Treasury yields moved higher to start the week as oil prices jumped and investors prepared for the week's slate of inflation data and Treasury auctions. The 10-year yield climbed above 4.71% on Monday before pulling back somewhat on Tuesday as oil steadied amid diplomatic signals surrounding the US-Iran conflict. On Wednesday, the in-line CPI report left yields largely unchanged, as the data was widely seen as a potential catalyst for the Fed to pause rates in September. Thursday's flat PPI reading provided more relief, with the 2-year yield falling more than 5 basis points to 4.145% and the 30-year dipping to 5.213%. They then rose slightly on Friday amidst a weak retail sales report. 

Oil
Oil prices surged at the start of the week as doubts grew over whether a lasting agreement between the US and Iran was achievable in the near term. WTI settled more than 5% higher on Monday at $82.13 a barrel, while Brent climbed to $87.72. On Tuesday, WTI futures pushed higher as Hormuz tensions continued to flare. Brent briefly topped $89 on Wednesday before pulling back, as investors weighed conflicting signals about the state of negotiations. The IEA's monthly report added to the cautious tone, projecting a global supply shortfall of 1.8 million barrels per day this quarter as a result of the ongoing conflict. On Thursday, prices retreated, with forecasters lowering demand outlooks and some risk appetite returning to markets following the tame inflation data. Then, on Friday, they rose going into the weekend on new developments regarding the US-Iran conflict.

Gold 
Gold entered the week at elevated levels, with futures opening around $4,400 per troy ounce on Monday, the highest opening price since early June. The boost was buoyed by the prior week's strong rally that followed a weak July jobs report. Prices then drifted modestly lower through Monday and Tuesday as investors awaited the inflation data. Gold found its footing again on Wednesday as the CPI report reinforced expectations for a Fed pause, with analysts noting that cooling inflation increases odds rates may be not be hiked. On Thursday, prices pulled back, but they headed higher on Friday going into the weekend.

Crypto 
Bitcoin entered the week above $65,000, continuing a stretch of 4 straight days above that level. However, it struggled to hold those gains as the week progressed, with the opening price declining each successive day. By Wednesday, it was trading near $63,500 as the market searched for direction ahead of the CPI data. It then found some footing following the in-line inflation report, but remained under pressure through Thursday and Friday. The altcoin market followed the same pattern.

Source: Yahoo Finance, as of August 14, 2026.

KEY DATA FOR THE WEEK OF AUGUST 17

A lineup of retail earnings will dominate the week, alongside new housing and employment data.

Source: Fidelity.com, as of August 14, 2026.