Homrich & Berg says AI data center build-out lifts investment, supports risk assets

Homrich & Berg’s August 2026 Market Monitor flagged steady U.S. growth led by AI data-center investment, supporting risk assets despite stretched valuations.

Sticky inflation shifted focus to possible Fed tightening later this year, with fiscal support fading and a more hawkish tilt seen as a risk to further gains.

Stocks stayed tied to the AI theme; the S&P 500 fell on the month while the equal-weighted index rose, signaling improved breadth.

Emerging markets slid more than 9% at one point before recovering most losses; Russell 3000 growth logged its worst month versus value in 25 years.

The FOMC held rates; three officials dissented for a hike, the 30-year yield hit 5.2%, and the curve steepened as the 2-year yield eased.