Best Commission-Free Brokers in Europe for 2026: DEGIRO, Trade Republic, and Alternatives Compared

A hotter-than-expected US inflation print jolted global markets on **August 11, 2026**, snapping a multi-day equity rally and sending bond yields sharply higher. Investors recalibrated expectations for Federal Reserve rate cuts, driving risk assets lower and lifting the dollar. ## Market Overview US stocks reversed early gains after the July Consumer Price Index (CPI) showed inflation running faster than economists had forecast. The **S&P 500** closed at **4,420**, down **1.3%**, while the **Nasdaq Composite** dropped **1.7%** to **14,050**. The **Dow Jones Industrial Average** held up slightly better but still lost **0.9%**, finishing at **36,100**. The inflation surprise rippled quickly through bond markets. The yield on the **10-year US Treasury** spiked to **4.31%**, up from 4.18% the previous day, as traders dialed back bets on near-term monetary easing. Shorter-dated yields moved even more, with the 2-year climbing to 4.82%. Commodities also responded to the shifting interest rate outlook. **Gold** slipped to **$2,035/oz**, its lowest level in three weeks, as rising yields dented demand for non-yielding assets. **WTI crude oil** finished little changed at **$83.10/bbl**, shrugging off the inflation news as supply concerns remained muted. Currency markets reflected the global risk-off mood. The **US Dollar Index (DXY)** jumped to **105.2**, its highest since early July. The **EUR/USD** pair fell below 1.07, with the euro pressured by both dollar strength and ongoing concerns about Eurozone growth. For those managing international portfolios, this volatility underscores the importance of currency hedging, a topic explored in detail in our guide to building a EUR/USD hedged ETF portfolio. ## Key Movers Tech stocks led the day’s declines, with the **Nasdaq 100** underperforming broader indices. Mega-cap names like **Apple (AAPL)** and **Nvidia (NVDA)** fell over 2%, as elevated yields weighed on growth valuations. Semiconductor shares in particular came under pressure after a major chipmaker warned of weaker demand in the second half. Bank stocks proved more resilient. Shares of **JPMorgan Chase (JPM)** and **Bank of America (BAC)** edged higher as rising yields pointed to improved net interest margins. The **financial sector** was the only S&P 500 group to finish in the green. On the ETF front, flows turned defensive. The popular **VWCE ETF**—recently in the spotlight for its record inflows—saw modest outflows as investors moved to cash and short-term bond funds. For a closer look at what’s been driving European ETF trends this August, see our deep dive on VWCE ETF inflows and European retail investor behavior. Meanwhile, real estate stocks and related ETFs continued to lag. Persistent worries about higher-for-longer rates and policy uncertainty in key markets like Germany kept the **real estate sector** under pressure. ## What to Watch Attention now turns to the next batch of economic data and central bank commentary. US retail sales figures are due later this week and will offer more clues on consumer resilience in the face of sticky inflation. Several Fed officials are also scheduled to speak, with investors keenly parsing any hints on the policy outlook after today’s inflation shock. In Europe, investors will be monitoring the latest GDP readings and tracking ongoing volatility in real estate ETFs. For those managing risk in their ETF allocations, our guide to ETF portfolio stress testing provides practical steps for navigating choppy markets. With inflation surprising to the upside and rate cut hopes fading, expect volatility to remain elevated. Stay tuned for tomorrow’s recap as the market digests fresh data and central bank signals.