MarketPR

Buy-the-dip signal is in focus for S&P 500 and Nasdaq as FOMC rate projections shift

8/10/2026

Half of Federal Open Market Committee participants now project at least one quarter-point rate increase in 2026, up from zero officials who held that view earlier this year, a shift that puts the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) on notice.

The catalyst behind the hawkish pivot is persistent inflation: the Personal Consumption Expenditure price index, the Fed's preferred measure, printed at 4.1% in May, a five-year high.

Cleveland Fed projections show the metric trending toward 3.8% in August, still well above the central bank's 2% target.

The macro context The S&P 500 has gained 13% year to date and the Nasdaq Composite has added 15%, but both indexes face a tougher backdrop.