Wall Street wakes up to oil, bombs and bond-market drama

• Nasdaq-100 futures fell 1% while S&P 500 dropped 0.4%, with oil prices reaching two-week highs amid Middle East tensions and US Strategic Petroleum Reserve at Reagan-era lows
• The 10-year Treasury yield climbed to 4.72% and the 30-year hit 5.31%, a 19-year high, driven by government borrowing and AI infrastructure funding demands
• Home Depot shares rose 1% pre-market as consumers favored smaller summer projects, providing modest relief amid broader market weakness

Market Summary: Wall Street Faces Oil Surge and Bond Market Pressure

Market Overview:

US stock futures opened lower on Tuesday, August 18, 2026, with the Nasdaq-100 down 1%, S&P 500 off 0.4%, and the Dow relatively flat. Market weakness stems from escalating Middle East tensions and bond market concerns.

Geopolitical Developments:

President Trump announced plans for additional economic sanctions against Iran and threatened military action against Oman if it interferes with US operations in the Strait of Hormuz. These tensions are driving significant market volatility.

Energy Markets:

Oil prices rallied sharply, with Brent crude climbing to $91 per barrel and West Texas Intermediate reaching $84—both hitting two-week highs. The surge comes as the US Strategic Petroleum Reserve has fallen to levels not seen since the Reagan administration, raising supply concerns.

Bond Market Stress:

Treasury yields pushed higher on inflation worries, with the 10-year yield rising to 4.72% and the 30-year reaching 5.31%—a 19-year high. The yield increase reflects concerns about rising oil prices, heavy government borrowing, and substantial Silicon Valley AI infrastructure spending.

Corporate News:

Home Depot shares gained 1% in pre-market trading after reporting consumer spending on smaller summer projects. Toll Brothers and Klarna earnings reports are pending.

Market Implications:

The combination of geopolitical risk, energy price inflation, and elevated bond yields creates a challenging environment for equities, particularly growth-oriented technology stocks. Higher oil prices threaten to reignite inflation pressures just as markets had begun pricing in economic stability.