Wall Street delivered an upbeat August. The S&P 500 advanced more than 2.5% in August, while the Nasdaq gained more than 3%. The Dow climbed about 1.3% for the month.
However, Wall Street closed the month on a weaker note as renewed U.S.-Iran tensions reignited concerns about energy prices, inflation and the Federal Reserve's interest-rate path. Let’s take a look at the key events of the month.
Oil Up for the Month
In late August, the United States attacked Iranian rocket launchers that were preparing to deploy mines in the Strait of Hormuz. The strike marked the first direct U.S. attack on Iran in several weeks and raised fears of another escalation in the region.
The prospect of disruptions around the critical oil-shipping route pushed crude prices higher. Brent crude futures climbed above $88 a barrel. United States Brent Oil Fund LP BNO has added about 4.9% over the past one month (as of Aug. 31, 2026).
Fed Outlook Turns More Hawkish
The latest geopolitical developments come as investors are already reassessing the Fed's interest-rate outlook. Fed Chairman Kevin Warsh struck a hawkish tone in his Jackson Hole speech last week, warning that inflation remains too elevated and indicating that the Fed still has more work to do.
The comments, combined with the latest jump in oil prices, prompted traders to raise their expectations for a 25-basis-point rate increase in September. The implied probability climbed to about 62% over the weekend, compared with roughly 40% a week earlier, at the time of writing.
Treasury Department to Buyback Long-Term Bonds
In late August, the Treasury Department announced its decision to double the maximum size of its bond buyback operation to at least $4 billion from $2 billion. The move is aimed at containing rising bond yields.
Although the purchases are small compared with the broader Treasury market, they sent a strong signal to investors and gave fresh momentum to the debasement trade (read: GLD, IBIT and Other ETFs to Play Debasement Trade).
U.S. Dollar Under Pressure in August
The U.S. dollar fell to a three-month low against the euro in mid-August, as concerns grew that the U.S. Treasury’s plan to expand buybacks of longer-dated government debt could put additional pressure on the greenback.
Note that the U.S. dollar fund Invesco DB US Dollar Index Bullish Fund UUP, which offers direct exposure to the U.S. dollar, was under pressure between Aug. 18 and Aug. 28, 2026.
Jump in Cryptocurrencies
Crypto-related shares have rallied. Bitcoin, which is often viewed as an alternative to traditional fiat currencies, extended its rally. Bitcoin soared about 23% over the past month and crossed the $80K-mark in late August. Ethereum added about 32% over the past month (read: Bitcoin Reclaims $69K on Treasury Move: More ETF Upside Ahead?).
A White House meeting involving President Trump and cryptocurrency executives revived expectations for progress on the CLARITY Act and a more favorable U.S. digital-asset framework. The move and the dollar debasement trade led to the spike in cryptocurrencies. iShares Bitcoin Trust ETF IBIT is up about 23.5% over the past one month, while iShares Ethereum Trust ETF ETHA has advanced about 32.7%.
AI & Software Shares Rally
NVIDIA NVDA delivered upbeat results and projected about 70% revenue growth in fiscal 2028, well above Wall Street’s 43% forecast. Meanwhile, Salesforce CRM surprised skeptics with its AI strength after launching Claudeforce with Anthropic.
Salesforce also delivered a beat-and-raise quarter, sending shares up nearly 23% Thursday — their best day since 2020 and second-biggest gain since its 2004 IPO, per CNBC.
Fears that AI would disrupt traditional business models have eased, benefiting SaaS providers that were hit hard earlier this year as investors questioned demand for seat-based subscriptions (read: Software Stocks & ETFs: Is the AI Sell-Off Over?).
Top-Performing ETF Areas of August
Below we highlight a few top-performing ETF areas of the past one month (as of Aug. 31, 2026
).
Shipping
Breakwave Tanker Shipping ETF BWET – Up 76.7%
The Middle East conflict and the closure of the Strait of Hormuz have disrupted key shipping routes, driving a sharp surge in freight rates. This has strengthened the investment case for BWET.Plus, rising demand in emerging economies and limited investment in new tanker capacity are other positives.
Cryptocurrency
Cryptocurrencies ruled the month of August. Simplify Bitcoin Strategy ETF MAXI is up 48.7%, 21shares Hyperliquid ETF THYP is up 44.5%. Solana ETF SOLZ has gained 39.7% while Bitwise XRP ETF XRP is up 28.7%.
Gold Miners
Gold bullion ETF SPDR Gold Trust GLD has jumped about 9.9% over the past month (as of Aug. 31, 2026). Safe-haven demand and a flat greenback have boosted gold prices in the month. As mining ETFs often act as leveraged plays of the underlying metal, Global X Gold Explorers ETF GOEX has surged about 37% over the past month.
Silver Miners
Silver bullion ETF iShares Silver Trust SLV has gained about 14.6% over the past one month. The U.S. Treasury's decision to conduct bond buybacks triggered a massive bid for precious metals. SLV has a massive industrial usage also, including AI applications. Global X Silver Miners ETF SLVP added about 34.3%
Biotech
ARK Genomic Revolution ETF ARKG added 25.7%. ARKG’s August surge was driven mainly by a biotech risk-on rally. Moderna’s personalized cancer-vaccine breakthrough on August 19 acted as a cornerstone for the entire space. Strong performance in major ARKG holdings like 10x Genomics, Twist Bioscience, and Tempus AI boosted the fund. Strength in AI-driven precision medicine, sequencing, single-cell analysis and molecular diagnostics, along with upbeat earnings, led to the rally in ARKG.
Copper Miners
Global X Copper Miners ETF COPX advanced about 17%. The largest near-term catalyst was the threat of future U.S. tariffs on refined copper. Traders rushed to ship massive volumes of refined copper into U.S. COMEX warehouses to get ahead of a potential 15% tariff slated for January 1, 2027. Production interruptions in major miner Chile is another reason. Copper demand from AI data centers also rose.
Cannabis
AdvisorShares Pure Cannabis ETF YOLO is up about 23.4% over the past one month. According to data from Fortune Business Insights, the global cannabis market is projected to reach about $1.43 trillion by 2034 from $137.67 billion in 2026.In a landmark policy shift, the Trump administration reclassified medical marijuana from a Schedule I to a Schedule III controlled substance in late April 2026, marking the most significant federal reform on cannabis in more than half a century.
Uranium Miners
Sprott Junior Uranium Miners ETF (URNJ) has added 15.7%. URNJ rallied in August as investors rotated back into junior uranium miners as the uranium market began to look tighter and nuclear-demand expectations strengthened. Kazakhstan makes up roughly 39% of global primary uranium production, so any reduction in its expected output has an outsized market impact.
Kazatomprom recently cut its 2026 production target by 9.4%, per a source. Data-center electricity demand linked to AI infrastructure is also driving uranium prices higher.
Cloud Computing
WisdomTree Cloud Computing Fund WCLD has tacked on 17.1% gains. WCLD rallied in August because investors rotated back into cloud software and AI beneficiaries after strong earnings reduced concerns that AI spending would hurt traditional software companies. Hyperscalers' earnings also confirmed continued strength in cloud demand.
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This article originally published on Zacks Investment Research (zacks.com).
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