The Quick Read
- August was the story of two halves—with stock indexes setting new highs in the first half of the month, while drifting lower through the second half to finish modestly higher.
- The end of 2Q earnings season helped to propel AI-related stocks as reports showed better-than-expected results, moving markets upward to start the month.
- The Iran situation dragged on and interest rates moved higher due to elevated inflation and debt concerns, negatively impacting stocks during the second half of the month.
Earnings Growth Continues – For Now?
The month of August started off with a bang, with major indexes moving to record highs as elevated earnings expectations were largely exceeded, easing investor concerns that the recent rapid growth couldn’t continue. Development of AI resources continues to be at the forefront of investors’ minds, with health care benefiting from perceived increased AI efficiency, while demand for chips and memory showed no signs of slowing.
