European Investor
17 Aug 2026, 14:03
U.S. Stocks Mixed as Strong Empire State Manufacturing Data Complicates Fed Outlook
U.S. stocks traded mixed Monday as investors weighed unexpectedly strong manufacturing data against continued strength in technology and AI-related shares.
The S&P 500 was down 0.14% at 7,774.51, while the Dow Jones Industrial Average fell 0.34% to 53,548.44. The technology-heavy Nasdaq bucked the trend, rising 0.13% to 26,764.38.
The New York Fed’s Empire State Manufacturing Index climbed to 20.6 in August from 15.6 in July, substantially exceeding the 10.6 market forecast and reaching its highest level in more than four years. New orders and shipments also recorded solid gains, pointing to stronger manufacturing activity in New York State.
The stronger report offered a positive signal for U.S. economic growth but also complicated the interest-rate outlook. Input-price pressures increased in the survey, potentially reinforcing concerns that the Federal Reserve may need to remain cautious about declaring inflation fully contained.
Technology stocks were providing support to the Nasdaq, with renewed strength in AI and semiconductor names helping the index outperform the broader market. Investors are also looking ahead to Wednesday’s Federal Reserve meeting minutes for additional clues on the policy outlook.
For Wall Street, the combination of resilient economic activity and easing inflation remains broadly constructive, but stronger growth and renewed price pressures could limit expectations for a more accommodative Fed.
U.S. stocks traded mixed Monday as investors weighed unexpectedly strong manufacturing data against continued strength in technology and AI-related shares.
The S&P 500 was down 0.14% at 7,774.51, while the Dow Jones Industrial Average fell 0.34% to 53,548.44. The technology-heavy Nasdaq bucked the trend, rising 0.13% to 26,764.38.
The New York Fed’s Empire State Manufacturing Index climbed to 20.6 in August from 15.6 in July, substantially exceeding the 10.6 market forecast and reaching its highest level in more than four years. New orders and shipments also recorded solid gains, pointing to stronger manufacturing activity in New York State.
The stronger report offered a positive signal for U.S. economic growth but also complicated the interest-rate outlook. Input-price pressures increased in the survey, potentially reinforcing concerns that the Federal Reserve may need to remain cautious about declaring inflation fully contained.
Technology stocks were providing support to the Nasdaq, with renewed strength in AI and semiconductor names helping the index outperform the broader market. Investors are also looking ahead to Wednesday’s Federal Reserve meeting minutes for additional clues on the policy outlook.
For Wall Street, the combination of resilient economic activity and easing inflation remains broadly constructive, but stronger growth and renewed price pressures could limit expectations for a more accommodative Fed.
