Market Close: Mixed Stocks, US Deficit Surges, Inflation Tame • 8/12/26

• Market close was mixed: Dow down 21, S&P 500 up 20, Nasdaq up 143 points (0.5%).
• Oil companies (Marathon Petroleum, Phillips 66, Valero) and banks (JPMorgan Chase, Bank of America) hit fresh all-time highs.
• US budget deficit surged to its highest level since March 2021, driven by debt financing, Medicare, and war costs.
• July CPI showed headline year-over-year inflation up 3.4%, with a 2.9% monthly decline in gasoline prices but increases in airline fares and food costs.
• Google launched new Pixel phones featuring its Gemini AI, and Apple is set to release a rebuilt Siri powered by Gemini models.

Wednesday saw a mixed close for major averages, with the Dow slightly down and the S&P 500 and Nasdaq up. The US budget deficit surged to a high not seen since March 2021, and July inflation ticked slightly higher. Google launched new AI-powered phones, and a Chinese planemaker made its first international flight.