U.S. stocks ended August on a softer note as renewed U.S.-Iran tensions lifted oil prices and kept Treasury yields elevated. Still, the broader market picture remains encouraging. The S&P 500 gained 2.6% in August and stayed close to its recent record high, suggesting that the underlying uptrend remains intact despite geopolitical uncertainty and inflation concerns.

The rally could also become more broad-based, with cyclical areas potentially joining AI-related stocks if economic growth remains steady. Expectations of continued business investment provide further support, while possible policy measures aimed at easing financial conditions could create a better backdrop for equities.

With market momentum still positive but volatility…