Market Close: Stocks End Day Lower But Month Higher, Iran War in Focus, FTC Sues Amazon • 8/31/26

Watch on YouTube ↗  |  August 31, 2026 at 20:53  |  2:40  |  CNBC
Speakers
David Lewitz — Head of Equities, Americas, UBS Global Wealth Management
Torsten Slok — Partner, Apollo Global Management
Jill Schneider — Anchor/Reporter, CNBC Business News Update
Scott Bessent — Treasury Secretary

Summary

Stocks closed lower on renewed Iran fighting but still posted gains for August. UBS's David Lewitz said the bull market remains intact as earnings broaden beyond AI into cyclicals. The FTC sued Amazon over alleged advertiser overcharges, while Treasury Secretary Bessent cautioned against hiking rates into a supply shock and Apollo's Torsten Sløk said the Fed will likely hike in September and follow with more.

  • Renewed Iran fighting sent stocks lower and oil prices higher, but major indexes finished August higher.
  • Dow dropped 374 points, S&P 500 fell 25 points, and Nasdaq fell 31 points on the day.
  • David Lewitz says earnings growth is broadening beyond AI infrastructure into manufacturing, industrials, and financials.
  • The FTC and 22 state attorneys general sued Amazon over advertising auction overcharges; Amazon shares slid 2.5%.
  • Treasury Secretary Scott Bessent said a supply shock historically does not warrant rate hikes absent second or third order effects.
  • Apollo chief economist Torsten Sløk expects a September Fed hike and several more hikes to follow.
Ideas
David Lewitz Head of Equities, Americas, UBS Global Wealth Management 0:37
Bull market intact on broadening earnings
The U.S. bull market remains intact because earnings growth is expected to continue at a faster clip, supported by the AI infrastructure story and a broadening cyclical recovery; a healthy labor market keeps the consumer resilient even if bifurcated.
SPY HIGH
David Lewitz Head of Equities, Americas, UBS Global Wealth Management 0:52
Cyclical sectors see faster earnings growth
Earnings growth is broadening beyond AI infrastructure into cyclical parts of the market, with clear improvement emerging in manufacturing, industrials and financials, supporting those cyclical sectors.
XLI XLF MED
Torsten Slok Partner, Apollo Global Management 2:09
Fed likely starts multi-hike cycle
The Federal Reserve will hike interest rates at its September meeting, and because a single hike is very rare, this likely starts a sequence of three or four additional hikes that markets will price in; this reverses the earlier expectation of rate cuts.
U.S. Treasury yields HIGH
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This CNBC video, published August 31, 2026, features David Lewitz, Torsten Slok discussing SPY, XLI, XLF, U.S. Treasury yields. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: David Lewitz, Torsten Slok  · Tickers: SPY, XLI, XLF, U.S. Treasury yields