Global equities advanced in August, gaining 2.3% as resilient activity data and earnings outweighed higher bond yields. Materials, technology, and energy outperformed amid renewed AI optimism and elevated commodity prices.

• Government bond yields rose in most major markets as renewed US-Iran tensions lifted energy prices mid-month. Brent crude peaked near $95 per barrel on August 21, then ended the month at $89—little changed overall. Yields rose most in the energy-importing regions of Europe and Asia in particular.
• Fed Chair Warsh’s hawkish Jackson Hole speech added to the month-end rates repricing, prompting markets to bring forward expectations for rate hikes. Though the change in US ten-year and 30-year yields was 4 bps and -1 bps, respectively, the Treasury announced expanded long-dated bond buybacks to provide “greater liquidity support.”
• Earnings remained supportive for equities, with MSCI ACWI calendar year 2026 EPS estimates rising 2.3% during August. Nvidia’s strong results reinforced the AI investment theme, but IT leadership broadened as solid software results eased concerns that generative AI would disrupt these business models.
• Beyond IT’s 5.5% gain, materials and energy rose 9.8% and 4.1%,respectively, supported by higher metals prices, a softer dollar, and energy-supply risk. Gold rose nearly 10% as dollar weakness persisted and lower early-month rates boosted ETF demand. Central bank demand has also risen recently.