US Stock Market: Fed’s inflation fight puts Kevin Warsh’s credibility to the test - The Economic Times

• German business sentiment rose more than expected in August, with improvements reported across all economic sectors according to the Ifo survey. • This positive shift follows a 0.3% increase in Germany's GDP during the second quarter of 2026 compared to the previous quarter.

• YouGov BrandIndex has released its 2026 brand rankings for India, highlighting a mix of global tech giants and domestic favorites. • Local brands including Amul, Flipkart, and Tanishq successfully secured positions within the top 10 rankings.

• Post-pandemic corporate profits have significantly outpaced the recovery of capital investments, creating a strong divergence in economic growth patterns. • Companies are achieving higher returns from existing assets, but fresh fixed-asset investments have weakened due to global economic uncertainty and trade disruptions.

• US stock futures rose ahead of the August 26 session, with the Nasdaq 100 leading gains at 0.9% and Dow futures up 0.6%. • Investors are closely monitoring premarket gains for chipmakers Nvidia, AMD, and Micron, specifically awaiting Nvidia’s upcoming quarterly results.

• U.S. stocks finished mostly lower on Monday, August 25, 2026, driven by a significant sell-off in the technology sector. • The S&P 500 fell 0.3% to 7,652.86 and the Nasdaq declined, while the Dow Jones Industrial Average rose 0.3% to close at 53,417.16.

• The US dollar remained steady in Asian markets as traders await critical inflation reports and the upcoming Jackson Hole symposium this weekend. • Market participants are specifically focusing on the US Personal Consumption Expenditures (PCE) data to gauge future monetary policy.

• The June Consumer Price Index reported that inflation fell 0.4% for the month, though it remains elevated at 3.5% year-over-year. • Core CPI remained unchanged monthly and rose 2.6% annually, indicating that persistent high prices continue to overshadow broader economic improvements.

• Sensex and Nifty closed higher on Tuesday after reversing early losses, despite experiencing sharp volatility during the first expiry day following the launch of the closing auction session. • Market performance was mixed, with healthcare and financial stocks leading gains while broader market breadth remained cautious.

• Billionaire Stanley Druckenmiller warned that Scott Bessent, a Trump ally and potential Treasury Secretary, will likely fail if he attempts to suppress bond yields. • Druckenmiller argues that Bessent should prioritize cutting the US budget deficit rather than fighting market forces to lower borrowing costs.

• Economists Jeremy Siegel and Ed Yardeni are warning against Treasury Secretary Scott Bessent's strategy to expand government bond buybacks. • Professor Siegel has labeled this specific approach to yield curve manipulation as the “Bessent twist.”

• The Federal Reserve has announced the creation of five task forces designed to examine critical areas regarding the broad conduct of monetary policy. • In a separate update, Governor Cook delivered a speech focusing on the current economic outlook for both the United States and Alaska.

• Treasury Secretary Scott Bessent is facing mounting criticism over his proposed plans to intervene in bond markets, including pushback from a former mentor. • During a Washington news conference on Monday, Bessent announced "Operation Economic Fury," threatening Tehran and its allies with severe new sanctions.