Falling inflation does not automatically mean lower interest rates. Learn how core inflation, services, wages and inflation expectations shape central bank decisions.
Sticky US inflation and shifting Federal Reserve rate expectations shaped global markets during the week ending 28 August 2026. Nvidia's strong earnings supported technology stocks, while a stronger dollar and changing interest-rate expectations influenced currencies, bonds and commodities.
A company reports rising revenue, stronger profits and earnings above analyst forecasts. On the surface, the announcement appears positive. Yet instead of rising, its share price falls sharply. This reaction can seem confusing when the headline figures suggest that the business is performing well.
Global markets turned more cautious as rising government bond yields, renewed tensions surrounding Iran and higher oil prices weighed on risk appetite. US equities finished the week lower, while oil, precious metals and cryptocurrencies recorded strong gains.