Key Takeaways
- Inflation: July CPI rose 0.1% while PPI was flat, easing some concern that the Federal Reserve may need to raise rates at its September meeting.
- Consumer Spending: July retail sales fell 0.6%, making consumer activity an important trend to watch as we move through the second half of the year.
- Interest Rates: Long-term Treasury yields remain elevated, keeping borrowing costs, government debt and bond-market volatility in focus.
- Looking Ahead: Jackson Hole and midterm-election headlines are major topics that could influence markets.
Market Overview
Markets finished last week mostly flat as investors digested tame CPI and PPI inflation reports, softer retail sales, and the usual summer slowdown.
Market Index Performance: Last Week & Year-to-Date
| INDEX | LAST WEEK | YTD |
|---|---|---|
| Dow Jones Industrial Average | (0.48%) | +11.89% |
| S&P 500 | +0.33% | +13.70% |
| NASDAQ Composite | (0.01%) | +14.83% |
| Russell 2000 | +0.97% | +23.46% |
| Foreign Stocks | +0.03% | +13.07% |
| Emerging Markets | +1.38% | +21.63% |
| Bloomberg U.S. Aggregate Bond | +0.13% | +0.04% |
| Bloomberg Municipal Bond | +0.15% | +1.26% |
10-YEAR U.S. TREASURY
4.70%
up modestly from the prior week
WTI CRUDE OIL
$82.40/barrel
up about 5.4% for the week
Inflation & The Federal Reserve
Last week featured tame inflation reports. The Consumer Price Index (CPI) rose 0.1% in July, while the Producer Price Index (PPI) was flat. That was welcome news for investors and reduced some concern that the Federal Reserve may need to raise interest rates at its September meeting. Inflation remains above the Fed’s target, so the next round of economic data will still matter.
Consumer Spending & Retail Sales
Retail sales surprised investors, falling 0.6% in July. Weakness was most notable at auto dealers, gasoline stations and nonstore retailers, which include much of online shopping. Part of the slowdown followed stronger spring spending supported by income tax refunds and a shift of major online promotions into June. The new age 65 plus tax deduction tailwind is also now in the rear view mirror.
Bond Yields & Government Debt
Worth noting, long-term government bond yields remain stubbornly elevated. Last week’s $25 billion 30-Year U.S. Treasury auction cleared at a 5.216% yield, the highest auction yield for that maturity since 2001. The U.S. and governments around the world continue to face significant fiscal deficits, while a large amount of U.S. debt will need to be refinanced at today’s higher borrowing costs.
Jackson Hole & Midterm Elections
With more than 90% of S&P 500 companies having reported second-quarter earnings, attention will begin to shift to the Jackson Hole Economic Policy Symposium, August 27 through 29. Markets will be listening closely for comments from Fed Chair Kevin Warsh and other central bank leaders for clues about the path of interest rates. From there, we are a little over two months from the midterm elections, another potential source of headlines and market volatility.
Geopolitics & Oil
Can’t conclude without mentioning the U.S.-Iran conflict and the Strait of Hormuz. The situation remains unsettled: the U.S. says its naval blockade gives it control over passage through the waterway, while Iran suggests they have full control. The uncertainty continues to matter for oil prices, inflation and markets.
Social Security Workshops
We will be offering two Social Security Education Workshops designed for those approaching retirement or still deciding when to claim Social Security benefits.
WHEN —
TIME —
WHERE —
TOPICS —
Tuesday, September 15, 2026
1:00 PM, or 6:30 PM
Community House of Moorestown – 16 East Main Street Moorestown NJ, 08057
Social Security rules, claiming strategies, retirement income planning, and tax strategies
Making the right decision about when to claim your Social Security benefit can make a difference of thousands of dollars over the course of your retirement.
The workshop will cover Social Security rules, claiming strategies, retirement income planning, and tax strategies.
To reserve your seat, please call Colette Kopp at (856) 354-3200 x 205.
If you have previously attended this workshop, please feel free to share this information with friends or family who may have not yet filed for Social Security benefits.
As always, thank you for reading!
Paul Levin, CFP®, ChFC®, RICP®1, TPCP®
Managing Principal
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All market data sourced from The Wall Street Journal, Aug 14, 2026.
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.
- RICP® conferred by The American College ↩︎
