WEEKLY MARKET RECAP – August 21, 2026

The S&P 500 and NASDAQ declined roughly 1% to 2% for the week, ending a three-week winning streak as a particularly strong quarterly earnings season approached its conclusion. The S&P 500 finished 1.6% below the record high reached the previous week, while the NASDAQ remained 3.4% below its early-June peak.

U.S. Treasury yields moved modestly higher during a week in which the federal government’s gross debt surpassed $40 trillion for the first time. The 30-year Treasury yield ended at 5.27%, near its highest level in almost two decades. The 10-year yield finished at 4.73%, while the 2-year yield stood at 4.23%.

Treasury Secretary Scott Bessent announced plans to expand the government’s bond buyback program in an effort to ease longer-term borrowing costs. Beginning next month, the Treasury will double purchases from $2 billion to $4 billion per session, focusing on 10-, 20-, and 30-year securities, where some yields have recently climbed to their highest levels since 2007.

Elevated inflation pressures have also kept long-term borrowing costs high across many major global economies. Japan’s 10-year government bond yield rose on Tuesday to its highest level in roughly three decades, while Germany’s 30-year yield reached its highest point since 2011.

Oil prices advanced for a second consecutive week as developments in the Middle East and the Strait of Hormuz continued to influence energy markets. U.S. crude traded near $87 per barrel on Friday afternoon, up from approximately $82 a week earlier, but remained below the recent peak above $92 reached on July 23.

Gold extended its rally to a third straight week, reaching its highest level in more than three months. Gold futures traded around $4,670 per ounce on Friday afternoon, a substantial recovery from levels near $4,000 seen as recently as mid-July.

Investors will now turn their attention to the Federal Reserve’s annual three-day economic policy symposium in Jackson Hole, Wyoming, beginning Thursday, August 27. Fed Chair Kevin Warsh is scheduled to speak on Friday, with markets likely to closely assess his remarks for signals about the outlook for inflation, interest rates, and monetary policy.