Markets avoided the back to school blues in August, closing out the last full month of summer on a high note.
It was a broadly positive month despite ongoing geopolitical uncertainties and a mixed economic backdrop. The labor market showed a decline in job growth, though the unemployment rate ticked slightly lower, while inflation eased but remained somewhat elevated. Corporate earnings continued to be strong, posting the highest growth rate since Q2 2021, helping lift investor sentiment throughout the month.
The Nasdaq 100 led US indices higher, gaining 4.24% as large-cap tech names bounced back. The S&P 500, Dow Jones Industrial Average, and CRSP US Small Cap Index also finished in positive territory, adding 2.72%, 1.47%, and 1.36% respectively. Growth slightly outpaced value as a style for the month.
International markets kept pace with their US counterparts. Developed international stocks rose 3.26% and emerging markets advanced 3.01%, both benefiting from healthy earnings growth and the broader risk-on tone that carried through global markets in August.
Bonds posted modest gains, with aggregate US bonds up 0.36%. The 10-year Treasury yield saw some intra-month volatility, driven by inflation concerns tied to higher oil prices and uncertainty around the path of rate cuts, but ultimately closed the month right where it started at 4.75%. The Fed didn’t hold an official meeting in August, but markets are currently pricing in a 66% probability of a rate cut at the September meeting.
As we head into the fall season, it’s not unreasonable to expect some volatility from mixed economic data, interest rate uncertainty, and upcoming midterm elections. Still, August’s resilience is a good reminder of why it pays to stay grounded in a long-term plan rather than reacting to month-to-month noise. A disciplined, well-diversified approach remains the best way to navigate shifting conditions while keeping sight of your longer-term goals.
It wasn’t quite the Olympics, but the robots gave it their best shot in Beijing.
The city held its second annual World Humanoid Robot Games, where android competitors squared off in track and field, soccer, and even household chores like making beds and folding laundry.
For the first time, a robot ran the 100-meter dash faster than Usain Bolt’s world record of 9.58 seconds. However, it failed to stop at the finish line and had to be taken away by stretcher after running into the wall.
While there was no shortage of blooper worthy moments, companies are using the games as a way to court investors. The flashy events can also help engineers spot design flaws that can drive improvements.
However, experts caution that dexterity remains a hurdle. Robots can now sprint faster than world champions, but still struggle to hammer a nail.
In a world of instant everything, some people are looking for a little inconvenience.
Two new “slow-tech” apps are gaining traction by delivering messages the old-fashioned way, sort of. Roost and Carrier Pidge both use virtual animals to send texts at a slower pace.
Carrier Pidge’s developer said it took nine hours for his first message to travel from New York to Chicago via digital pigeon. There’s even a 0.2% chance a message will get lost along the way.
Despite the leisurely pace, both apps have found an audience since launching in April. Combined, they have around 750,000 users.
The appeal seems to be less about efficiency and more about disconnecting. It’s part of a broader movement which also includes a rise in “dumb phones” and social-media-blocking gadgets.
As one user put it, sometimes things are better when they’re worse.
Broad Market Returns
| Asset Class | 1 Month | 3 Month | YTD | 1 Year |
| S&P 500 (VOO) | 2.66% | 1.65% | 13.08% | 20.26% |
| NASDAQ (QQQ) | 4.18% | -2.81% | 16.95% | 26.26% |
| Large Cap Growth (VUG) | 3.57% | -1.41% | 8.76% | 15.94% |
| Large Cap Value (VTV) | 2.23% | 6.66% | 18.96% | 25.28% |
| Small Cap Growth (VBK) | 2.87% | -1.40% | 16.18% | 20.10% |
| Small Cap Value (VBR) | 0.27% | 4.93% | 17.01% | 19.80% |
| Developed International (VEA) | 3.26% | 2.14% | 17.54% | 27.79% |
| Emerging Markets (VWO) | 3.01% | 1.19% | 12.71% | 20.52% |
| REITs (VNQ) | -2.54% | 1.66% | 11.12% | 8.60% |
| Aggregate Bonds (BND) | 0.36% | -0.65% | -0.18% | 1.83% |
| Corporate Bonds (VCIT) | 0.21% | -0.91% | -0.43% | 1.95% |
| High Yield Bonds (JNK) | 0.95% | 0.91% | 2.70% | 5.18% |
| Long Term Treasuries (VGLT) | 0.81% | -2.25% | -2.48% | 0.09% |
| International Bonds (BNDX) | -0.21% | -0.91% | 0.01% | 0.83% |
Market Health Indicator
The Market Health Indicator (MHI) measures market health on a scale of 0 – 100, analyzing various market segments such as economics, technicals, and volatility. Higher scores indicate healthier market conditions.
Fun Facts
- Japan has produced the largest number of Kit Kat flavors, with over 400 unique seasonal, regional, and limited-edition varieties released.
- Chemist William Morrison built the first successful electric car in the United States in 1890, with a top speed of 14 miles per hour.
- Bottlenose dolphins develop signature whistles within the first few months of life, using them as lifelong personal names for identification.
- Take a break from that strict schedule, September 5th is National Be Late for Something Day.
– The Aspire Wealth Team
