Weekly Market Update for August 28, 2026

by Gavyn Jensen-Schneider, Research Associate

Market indices inched ahead as AI-related companies continued to report strong earnings. The S&P 500 finished the week up +0.49%, while the Nasdaq rose +0.85%. The 10-Year Treasury yield, an interest rate indicator, closed at 4.73%, unchanged from last week. The 6-Month US Treasury, a favorite of our US Treasury strategy, closed at 3.98%, up +6 basis points (bps) from last week.

The AI growth cycle was top of mind this week with chip manufacturing titan Nvidia’s earnings report on Wednesday. The world’s largest company continues to post exceptional earnings per share growth, which topped 110% year-over-year. Total revenues for the quarter reached $96 billion, while operating profits were nearly $64 billion, easily topping Wall Street expectations. The stock rose around 8% following the blowout results. AI beneficiaries CrowdStrike and Salesforce also posted strong Q2 results, with both management teams raising earnings, revenue, and profit expectations for the next fiscal year. Their stock prices moved north of 20% the day after reporting earnings.

With so much focus on AI’s role in the economy, it was only natural for Federal Reserve Chairman Kevin Warsh to talk about the rapid deployment of this new technology at the annual Jackson Hole Economic Policy Symposium. Chairman Warsh sees AI as “a new variable—potentially a new factor of production—that will have consequences for both the economy and the conduct of monetary policy.” The continued development of the technology is rapid, and the Chairman acknowledged the uncertainties surrounding the return-on-investment timeline for hyperscalers and other AI-enabling firms. The Chairman could be described as an AI optimist, with a strong belief that AI will lead to a sustained rise in productivity growth across the US economy, much like the advent of the personal computer in the late 1900s.

Outside of AI, Warsh reiterated his commitment to paring down Federal Reserve communications, aiming for “a quieter Fed” that allows market forces to react to data rather than policymakers. “Transparency in communications about future policy decisions is not a virtue unto itself,” said Warsh. In the view of the Chair, too much transparency can tie the Fed’s hands and limit the options at policymakers’ disposal. Finding the proper balance of communications will be a hallmark of Warsh’s tenure as Chairman, with the elimination of his pet peeve, “forward guidance,” as the first step in that process.

Geopolitics and trade have been tumultuous forces operating in the US economic backdrop. Negotiations with Iran continue to be hot and cold. With talks between Iran and the US breaking down yet again over the past few weeks, the Trump Administration announced a sweeping set of economic sanctions, or what Treasury Secretary Scott Bessent called “economic D-Day.” The sanction package targets over 60 Iran-linked entities in a variety of sectors, the most important of which being nuclear, military technology and oil. In addition, the Trump Administration has been putting threatening economic pressure on buyers of Iranian goods in a further attempt to disrupt the Iranian economy. China, which buys 90% of Iran’s oil exports, has pushed back on these economic threats. Chinese President Xi Jinping is slated to visit President Trump in Washington, DC on September 24, where Iran will almost certainly be a topic of conversation.

For corporate earnings, chips and computers are the story of next week, with Broadcom (AVGO) and Dell Technologies (DELL) as the major highlights. The month’s turnover from August to September brings new labor market readings, including the July Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, and the August employment report—which includes the unemployment rate, nonfarm payrolls, and the labor force participation rate—on Friday.