The S&P 500 closed August with a 1.5% increase, marking its fourth consecutive month of gains and reaching a record high. The Dow Jones rose 3.2% during the same period, while the Nasdaq saw a 1.6% gain, achieving its longest winning streak in nearly 18 months. Small-cap stocks also performed well, with the Russell 2000 surging roughly 7%, the strongest monthly gain in over four years.
However, U.S. stocks experienced a decline on August 29 due to inflation concerns, with the personal consumption expenditures price index revealing a core inflation rate of 2.9% seasonally adjusted for July, matching estimates but increasing from June levels. Consumer sentiment dropped to a three-month low amid economic concerns, but traders still anticipate an 86.4% chance of a quarter-point rate cut by the Federal Reserve in September.
In the ETF market, notable performers included the Roundhill Cannabis ETF (WEED), which gained 91.3%, and the Amplify Seymour Cannabis ETF (CNBS), up 83.2%, following discussions of potential reclassification of marijuana. The KraneShares SSE STAR Market 50 Index ETF (KSTR) increased by 29.7%, and the Sprott Active Gold & Silver Miners ETF (GBUG) rose by 25.5%.
