Wall Street in the Red for Third Consecutive Day
Dow Jones fell 0.22 percent to 53,343 points, S&P 500 lost 0.69 percent, and Nasdaq dropped 1.33 percent. Rising bond yields and oil prices push investors away from riskier stocks.
Dow Jones fell 0.22 percent to 53,343 points, S&P 500 lost 0.69 percent, and Nasdaq dropped 1.33 percent. Rising bond yields and oil prices push investors away from riskier stocks.
U.S. stock markets recorded their third consecutive day of declines, with major indices closing in the red on August 18, 2026. The Dow Jones weakened 0.22 percent to 53,343 points, the S&P 500 slipped 0.69 percent to 7,691 points, while the Nasdaq dropped 1.33 percent to 26,289 points.
Investors focused on oil prices, which rose further as there is no progress in peace negotiations between the U.S. and Iran. As a result, the Strait of Hormuz, a key route for oil exports from the Middle East, remains closed. Rising oil prices could fuel inflation, potentially prompting central banks worldwide, including the U.S. Federal Reserve, to raise interest rates.
Consequently, yields on U.S. bonds are rising. The yield on 30-year bonds reached its highest intraday level since 2007, specifically 5.337 percent, according to the Wall Street Journal. Rising yields traditionally have a negative impact on the stock market, especially the technology sector.
Burns McKinney, portfolio manager at NFJ Investment Group, described the chain reaction pressuring the market.
"It's like a domino effect. Peace talks are not progressing, leading to higher oil prices. That, in turn, leads to higher inflation and rising bond yields. And whenever yields rise, tech stocks come under pressure," McKinney told Tportal.
His words were confirmed by the numbers themselves. Stocks in the information technology sector fell by an average of 1.9 percent, with chipmakers like Nvidia and Micron Technology under the most pressure. The PHLX semiconductor index plunged as much as 5 percent.
On the other hand, boosted by rising oil prices, energy sector stocks rose the most, by an average of 1.8 percent. That was a rare bright spot in an otherwise red market.
European markets were not spared either. The exception was London's FTSE index, which gained 0.07 percent to 10,728 points. Frankfurt's DAX weakened 0.80 percent to 26,128 points, and Paris's CAC fell 0.82 percent to 8,509 points.
Although the news has no direct Croatian connection, the global rise in oil prices and bond yields indirectly affects the Croatian economy through increased energy costs and potentially tighter monetary policy.
