Dow opens 150 points lower as oil rises and Treasury yields pressure stocks

• US crude oil rose 0.93% to near $85/barrel and Brent gained 0.46% to three-week highs as US-Iran peace talks collapsed, with Iran threatening a 'fully offensive' posture and the US refusing to extend a ceasefire that expired August 17.
• The 30-year Treasury yield increased to 5.323% (highest since 2007) and the 10-year yield remained near January 2025 highs, weighing heavily on tech stocks with Nvidia and Tesla down over 1%, and semiconductor stocks (Micron, AMD, Intel) falling 3-5%.
• Money-market data shows traders pricing in a 96% probability of a 25-basis-point rate hike this year, with investors awaiting Wednesday's Fed July meeting minutes and next week's Nvidia earnings for further market direction.

Market Summary: Stocks Decline on Rising Oil Prices and Treasury Yields

Market Performance:

US equities opened sharply lower on Tuesday, August 18, 2026, with the Dow Jones falling 153 points, the S&P 500 declining 0.56%, and the Nasdaq Composite dropping 1.24%. The CBOE Volatility Index rose to two-week highs, reflecting increased investor caution.

Key Drivers:

Escalating US-Iran tensions pushed crude oil prices higher, with US crude rising 0.93% to near $85 per barrel and Brent gaining 0.46% to three-week highs. A senior Iranian official warned of a "fully offensive" military posture if negotiations fail, while Washington rejected extending a temporary ceasefire that expired August 17. President Trump threatened military action against Oman if it interfered with US objectives.

Treasury Yields:

The 30-year Treasury yield climbed to 5.323%, its highest level since 2007, while the 10-year yield remained near January 2025 peaks. Rising yields increased borrowing costs and pressured growth stocks by reducing future earnings valuations.

Sector Impact:

Technology and semiconductor stocks led declines. Tesla and Nvidia each fell over 1%, while AMD, Intel, Micron Technology, and Marvell Technology dropped 3-5%. Storage companies Western Digital and Seagate plunged more than 5% each.

Market Outlook:

Investors are concerned that elevated energy costs will sustain inflation pressures, complicating Federal Reserve policy decisions. Money-market data shows 96% probability of a 25-basis-point rate hike this year, though September expectations declined following softer inflation data. Market focus turns to Wednesday's Fed meeting minutes and Nvidia's upcoming earnings report for further direction on the AI trade.