August 2026 Market Review & Commentary

Market Update

After a mixed July that produced clear winners and losers across different areas of the market, August provided another reminder of how quickly market leadership can shift. The S&P 500 gained 2.7% during the month and reached a new all-time high, while the Nasdaq-100 gained 4.2%, rebounding from its July decline. Energy led all S&P 500 sectors with a 7.0% gain, followed closely by Technology at 6.2%.

Perhaps more encouraging than the headline returns was the breadth of the advance. The S&P 500, Dow Jones, Russell 2000 and equal-weight S&P 500 all reached new highs during August, meaning the strength wasn't confined to just a handful of large technology companies. We've seen leadership rotate several times this year, and August was another example of why maintaining exposure across different areas of the market remains important.

Interest rates remain in one area we're watching closely. Longer-term Treasury yields moved higher during August as investors continued to weigh persistent inflation, government borrowing and energy prices. At the same time, geopolitical headlines and artificial intelligence remain two of the dominant themes influencing markets this year.

Looking Ahead

As we move into the fall, we expect markets to continue balancing solid underlying fundamentals against uncertainty surrounding inflation, interest rates, geopolitical events and the upcoming midterm elections. Periods of increased volatility would not be surprising as the election approaches, particularly as markets digest changing expectations around policy and the economy.

The encouraging part is that markets have become increasingly resilient to many of the headlines that created significant volatility earlier this year. Investors appear to be focusing more on whether events change corporate earnings, economic growth or inflation rather than reacting to every headline independently.

Our focus remains the same: stay disciplined, recognize that different parts of the market will lead at different times, and avoid allowing short-term volatility to disrupt a long-term strategy.

Around Three Leaf Financial

We have quite a few updates to share this month as we continue to invest in the people, resources and infrastructure supporting our clients.

A New Home for Our Northern Virginia Office

We are excited to share that our Northern Virginia office will be moving to a new location, which we expect to happen before the end of the year (targeting December 2026). We have been in our current office space for 14 years, so this change is exciting a

Don't worry—we aren't going far! Our new office will be just a few blocks closer to Fairfax Town Square. With our current building scheduled for redevelopment in the coming year, we took the opportunity to begin looking for our next home and have identified a great location in a building we think will serve our team and clients very well.

There is nothing clients need to do at this point. We'll share the new address, timing and everything you need to know as we get closer to the actual move.

New CPA & Tax Resource Available for Our Clients

We're also happy to announce that we have solidified a relationship with Hendershot-Burkhardt Tax Services in Manassas.

Hendershot-Burkhardt is a locally based tax firm with roots in the Northern Virginia community dating back to 1996. Their services include individual and business tax preparation, tax planning, IRS representation and bookkeeping. We believe their emphasis on long-term relationships and providing personal attention makes them a natural resource for Three Leaf clients who need assistance with tax preparation or tax-related questions.

If you are looking for a tax preparer for the 2026 Tax Year, please reach out to them soon to coordinate a tax preparation appointment for to ensure you have slot on their calendar.

As always, your choice of tax professional is entirely your own. Our goal is simply to continue expanding the network of trusted resources available to our clients.

A Reminder About Scams & Financial Fraud

Unfortunately, we continue to hear about increasingly sophisticated scams targeting retirees and older adults. Fraudsters may impersonate financial institutions, government agencies, technology companies, family members or even people you've developed an online relationship with.

A few simple rules are worth remembering:

• Never provide account numbers, passwords, verification codes or Social Security information in response to an unexpected phone call, text or email.

• Be extremely cautious when someone creates a sense of urgency or secrecy—particularly if you're told not to speak with your family, bank or financial advisor.

• Be suspicious of requests to send money by wire, cryptocurrency, gift card or other methods that are difficult to reverse.

• Be cautious of new acquaintances or online relationships that eventually involve requests for money, loans or investment opportunities. Many of these scammers create a narrative around the need for loan because of a restriction or awaiting some payment in the future.

• If someone claims to represent a bank, government agency or financial company, stop the conversation and independently contact the organization using a phone number you already know or obtain from its official website.

• And most importantly, call us before moving any significant amount of money if anything about the situation feels unusual. We would much rather spend five minutes helping you verify something legitimate than see you become the victim of a scam.

Scammers are increasingly convincing, and being targeted is not a reflection of someone's intelligence or financial sophistication. Creating a habit of stopping and verifying before sending money is one of the strongest protections you can put in place.