Market Brief — August 13, 2026

Key Points

01Softer July CPI and flat PPI have supported risk appetite, helping US indices advance.
02The Fed held rates at 3.50%-3.75%; subdued inflation and a 23,000 payroll drop have kept markets data-focused.
03SMIC's Q2 beat and AI-focused capacity reallocation have driven semiconductor interest and strong trading activity.
04Communication services, technology and real estate outperformed; basic materials, healthcare and industrials lagged.

Global Market Summary

US indices advanced, with SPX up 0.7%, ^IXIC up 0.8%, and DJIA up 0.1% as softer July CPI and flat PPI plus a Fed on hold at 3.50%-3.75% supported risk appetite. In Europe, DAX fell 0.1%, FRA40 lost 0.3%, and UKX dropped 0.6% while markets digested stronger UK GDP prints alongside recent US inflation data. In Asia, 000001.SS ended flat on the day as regional traders weighed semiconductor earnings and energy-market news.

Top Movers

Communication services (XLC) gained 2.1%, technology (VGT) rose 1.1%, and real estate (VNQ) added 1.3%, while basic materials (XLB) slipped 0.5% and healthcare (XLV) and industrials (XLI) were marginally negative. NBIS (+34.1%), QNT (+28.0%), SHAZ (+21.0%), and CRWV (+19.3%) were among the strongest movers, each posting volumes well above their 3-month averages. MAAS (-21.4%), FRVO (-16.6%), LQDA (-10.5%), ALMR (-9.4%), and LB (-9.1%) led decliners even as MAAS and LQDA remain up more than 200% over the past 52 weeks.

Macro highlights

July US inflation stayed subdued, with CPI up 0.1% m/m and 3.4% y/y and core CPI up 0.2% m/m and 2.5% y/y, while PPI final demand was unchanged and core PPI rose 0.2% m/m, prompting futures to lift the implied probability of a Fed hold in September to about 65% from 60%. The Federal Reserve kept the funds rate steady at 3.50%-3.75% in July despite several dissenters favoring a 25 bp hike, and the softer inflation and a 23,000 decline in July nonfarm payrolls kept markets focused on incoming data. In the UK, GDP grew 0.4% in Q2 2026 with June GDP up 0.3% m/m versus 0% previously and stronger ICT-related investment, while the US Dollar Index (DXY) consolidated around 99.5-100.1 as Brent near $88/bbl and WTI around $81-83/bbl paused after recent gains.

News that moved markets

SMIC reported Q2 profit of US$479.2 million on revenue above US$3.0 billion, up 36% y/y and nearly double the US$253.4 million consensus, and guided Q3 revenue to US$3.06-3.12 billion (up about 2%-4% q/q) while reallocating capacity toward AI-related production. TQM.CS shares were volatile after the resignation of the Tata Sons chairman, with the stock dropping 4.84% intraday to Rs 2,322 before trading around Rs 2,366.90 on heavy volume of 7,022,611 shares versus a prior close of Rs 2,445.70, down 3.93%. US natural gas futures eased as Henry Hub spot slipped from US$2.79 per MMBtu on Aug. 11 to about US$2.74 on Aug. 13 alongside reports of rising storage and inventories, while Ukrainian drone strikes on Russian refineries coincided with July truck freight rates rising roughly 12%-15% m/m and a shift in volumes toward rail and sea. DivDat completed its acquisition of Meridian Integration, Pennsylvania American Water closed its purchase of the Sutersville-Sewickley Municipal Sewage Authority wastewater system, and Parker completed the acquisition of Filtration Group Corporation. Announced transactions included SparrowHawk's acquisition of an EQT portfolio of 20 industrial assets totaling 4.4 million square feet and asset deals by Nexxus Capital, Astara Capital Partners, CAI Software, Lamar Advertising, and Reese Consumer Health. Check-Cap (MBAI) reported progress on its planned merger with MBody AI, with a reverse share split becoming effective.

Upcoming Session: Key Events

01US Retail Sales MoM (JUL) — consensus 0.2% vs 0.2% prior, Aug 14, 12:30 PM | Tracks goods spending momentum and household demand, a key driver of near-term growth.
02US Michigan Consumer Sentiment Prel (AUG) — consensus 54.5 vs 55.2 prior, Aug 14, 02:00 PM | Gauges consumer confidence and expected spending trends influencing near-term demand.

Upcoming Session: Tickers to Watch

01Check-Cap (MBAI) — reported progress on its planned merger with MBody AI and a reverse share split became effective. With the split now live, watch the next session's open for adjusted quotes, potential gaps and liquidity shifts as investors reprice the deal.
02SMIC (SMIC) — reported Q2 profit of US$479.2 million on revenue above US$3.0 billion and guided Q3 revenue to US$3.06–3.12 billion while reallocating capacity toward AI production. Look for carry-over into semiconductor peers and elevated trading at the next open as the beat is absorbed.
03US natural gas futures (Henry Hub) — eased as Henry Hub spot slipped from US$2.79 per MMBtu on Aug. 11 to about US$2.74 on Aug. 13 alongside reports of rising storage and inventories. Monitor the next open for further repositioning and intraday volatility as inventory signals are absorbed.
04US Dollar Index (DXY) — consolidated around 99.5–100.1 after softer July CPI, flat PPI and the Fed holding the funds rate at 3.50%–3.75%; futures lifted the implied probability of a September hold to about 65% from 60%. Expect renewed positioning and intraday volatility at the next open as rate odds are repriced.

Key Takeaways

01Softer July inflation and the Fed's hold have lifted US indexes and risk appetite.
02European equities have lagged as markets absorbed stronger UK GDP and mixed regional earnings.
03Small-cap winners saw outsized volume and gains; some decliners fell sharply despite >200% gains over the past 52 weeks.
04Deal activity continued with multiple completed acquisitions and announced asset transactions.

References