US Markets Rally on Inflation Data; Cisco Shares Drop

The S&P 500 reached a record high on August 13, 2026, climbing 0.65% to 7,798.99 as markets responded to favorable inflation data. Tamer producer price index figures for July reinforced investor hopes that the Federal Reserve will maintain current interest rates in September. This rally was largely led by the technology sector, with major AI-focused companies and chipmakers seeing significant gains.

Despite the broader market enthusiasm, Cisco Systems shares fell 8.4% after the company reported lower gross margins. Investors expressed concern over the profitability of its growing AI infrastructure business, which continues to see strong demand. Meanwhile, other technology firms benefitted from positive quarterly results in the hardware sector, maintaining the momentum created by sustained optimism in artificial intelligence spending throughout the 2026 fiscal year.

In India, the Multi Commodity Exchange of India (MCX) has continued its strong trajectory, rallying over 100% in a year. The stock remains buoyed by increased options trading volumes and potential regulatory reforms regarding foreign investment in commodities. Additionally, the Indian defense sector remains in the spotlight, with companies like Mazagon Dock Shipbuilders drawing attention following strong quarterly profit growth and reports of potential strategic government stake sales in the coming fiscal year.