Markets were positive across the board in August. The Nasdaq led up 4% and the S&P 500 gained 2.7%, while all other indices posted positive months. The Energy sector advanced an additional 7.4%, following a 12% gain in July, leading all sectors once again. Utilities lagged, down 4.8%, while Consumer Staples, Real Estate, and Industrials were all also negative in August.

Oil prices were tame in August, but remain elevated as conflict in the Middle East carries on. Brent crude fell 4.3% for the month to $92.71 per barrel, as WTI ended virtually flat, just 0.2% higher at $86.34 per barrel. The US inflation rate declined 0.1% MoM to 3.3%, continuing to cool following the three-year highs reached in May.

Treasury yields moved higher across the front end of the curve. The 20-year and 30-year were the only to decline, dropping 4 and 2 basis points respectively. The 3-month and 1-year saw the biggest increase across the curve of 8 basis points each, as the 10-year went unchanged in August. Bond funds increased as a result, none more than iShares iBoxx $ High Yield Corporate Bond ETF (HYG), which rose by 0.9%.

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