Weekly Market Update: August 25, 2026
After three consecutive weeks of gains, U.S. equity markets pulled back as investors contended with another surge in long-term Treasury yields, rising energy prices, and renewed concerns about fiscal deficits. Importantly, we believe the weakness was driven more by valuation pressures from higher interest rates than by deterioration in economic fundamentals. In our view, the primary challenge for markets remains the rapid repricing occurring in long-term bond markets, where investors are demanding higher compensation for inflation, fiscal, and supply-related risks.