Weekly Market Commentary 8-3-2026

Macro Backdrop Remains Challenging & Earnings Offer a Solid Foundation for Stocks in the Second Half

See what we have to say about the following:

• Macro Backdrop Remains Challenging & Earnings Offer a Solid Foundation for Stocks in the Second Half
  Despite geopolitical and energy-market uncertainty, LPL believes strong corporate earnings should continue to support stock gains through the remainder of 2026.

• Artificial Intelligence Investment is Providing a Strong Earnings Tailwind
  AI-related investment continues to drive better-than-expected earnings growth, even as investors remain focused on whether hyperscalers can ultimately generate attractive returns on that spending.

• Valuation Discussion Requires Nuance & Risks That Could Hold This Market Back
  While stock valuations appear reasonable on earnings, elevated capital spending, geopolitical tensions, inflation risks, and AI overinvestment concerns could create periods of volatility.

• STAAC Commentary and Asset Allocation Insights
  STAAC remains overweight equities and favors energy and industrials while maintaining a defensive tilt and emphasizing quality within fixed income amid ongoing market uncertainty.