The index rose 3.3% in August, marking its largest gain for the period since 2004. Global investors seeking to diversify their exposure to dollar-denominated assets drove capital inflows into emerging markets, while the ripple effects of the artificial intelligence boom also boosted the rally. However, the index edged down 0.1% on Monday due to escalating tensions in the Middle East and renewed expectations of a Federal Reserve rate hike. Money markets are currently pricing in a more than 60% probability of a 25 basis point rate hike in September.