S&P 500 rises 2% in August, led by energy sector amid mixed economic signals and strong earnings outlook

In August, the S&P 500 gained over 2%, reaching an all-time high mid-month, driven by strong performance in the energy sector, especially smaller refiners like MPC, PSX, and VLO. Despite ongoing macroeconomic risks such as labor market uncertainty, persistent core inflation, and a likely Federal Reserve rate hike in September, earnings momentum for the S&P 500 remains strong. Analysts have raised year-end targets above 8000, supported by robust earnings per share growth and resilient consumer spending. Utilities lagged due to rising Treasury yields, but overall market sentiment stayed positive on the back of mega-cap strength and solid fundamentals.