S&P 500 Gains 2.62% in August as Industrials Lag the Broader Rally

The S&P 500 closed out August 2026 with a monthly gain of 2.62%, while the Nasdaq Composite outpaced it with a 3.93% rise. The strong month for equities came even as one of the market's largest sectors visibly fell behind, raising questions about the breadth of the advance.

The Industrial Select Sector SPDR Fund, XLI, underperformed the broader index in recent weeks, with Caterpillar flagged as a notable laggard within the sector. Technical analysis highlighted the divergence as a caution signal, noting that industrials failing to participate alongside a rising S&P 500 points to uneven market internals.

Elsewhere in markets, unusual options activity on August 31 included bullish call positions in NVDA at a September $225 strike, TSLA at a September 11 $400 strike, ASTS at October $65 and $70 strikes, and energy names COP and XOM at November and December strikes respectively. Leveraged ETFs TQQQ, SOXL, and UPRO also drew caution flags heading into September. Intercontinental Exchange stock underperformed its peer group on Monday.