US close: Tech stocks weigh as bond yields grind higher
By Benjamin Chiou
Date: Tuesday 18 Aug 2026
(Sharecast News) - US stocks finished in the red on Tuesday, with weakness in the tech sector weighing on the Nasdaq Composite, as rising bond yields sapped investors' appetite for risk.
The tech-heavy Nasdaq dropped 1.3% to settle at 26,289.71, its lowest since 3 August after a three-session losing streak. The Dow finished 0.2% lower, while the S&P 500 fell 0.7%.
Treasury yields were in focus again, with the 30‑year Treasury yield briefly hitting 5.333%, a level not seen for almost two decades after touching its highest point since June 2007 on Monday. The 10-year yield hit 4.704% while the two-year yield was at 4.171% - both at multi-year highs.
Yields have been grinding higher as investors fret that oil prices could remain elevated amid stalled US-Iran negotiations, with Donald Trump saying on Monday that he would attack Oman "if it gets in the way", adding to ongoing geopolitical tensions.
West Texas Intermediate settled up 0.5% at $84.94, while international benchmark Brent crude rose 0.2% to $91.02.
"A surge in bond issuance, persistent inflation risks and concerns over widening fiscal deficits fuelled a sell-off in longer-dated debt," said Axel Rudolph, chief technical analyst at IG,
"Expectations of heavy AI-related corporate borrowing are adding to supply pressures, while rising oil prices, amid continued tensions involving Iran, are reinforcing inflation concerns. The combination is pushing investors to demand higher returns for holding long-term bonds and raising questions over whether the Federal Reserve may need to keep monetary policy tighter for longer."
In equity news, Klarna shares tanked 23% on Tuesday after the payments group lowered its full-year volume outlook and announced departures of its chief financial and marketing officers. Guidance was cut as a result of $600m of currency translation effects and a "more measured view" of volumes in Germany, its largest market by volume.
US-listed shares of Chinese tech group Baidu dropped 12% after it reported another drop in its financial performance in the second quarter, as rapid growth in AI businesses failed to offset continued weakness across its legacy operations.
Even DIY retailer Home Depot finished lower despite posting second‑quarter numbers that topped Wall Street expectations, while also reiterating its full‑year guidance. Comparable sales increased 1.7%, beating expectations for a 0.9% rise and marking the retailer's strongest comparable performance since the third quarter of 2022.
Economic data flurry
Investors were also contending with a barrage of key economic indicators released during the session, many of which came in below analysts' estimates.
The Census Bureau reported that US housing starts dropped 12.4% to 1.23m, missing forecasts for 1.35m and coming close to the six‑year low seen in May. Multi‑unit starts fell 15.6%, with single‑unit starts down 9.9%. Starts declined across the Midwest, South and West, but rose 17.1% in the Northeast.
However, US building permits increased 5% month‑on‑month to an annualised rate of 1.44m, comfortably above expectations for 1.37m. Multi‑unit permits jumped 9.1% to 490,000, while single‑family authorisations were up 2.5% at 894,000.
US import and export prices fell in July, according to the Bureau of Labor Statistics, with lower fuel costs dragging imports lower and non‑agricultural weakness weighing on exports. Import prices slipped 0.4% on the month after a 0.3% decline in June, marking the sharpest fall since May 2025. Export prices fell 1.3% in July following a 0.7% drop in June.
US industrial production rose just 0.2% in July, according to the Federal Reserve's latest update, in line with June's increase but under the 0.3% expected.
Also from the Fed, US capacity utilisation ticked higher in July, rising to 76.3% from a revised 76.2% in June, matching market expectations and marking its strongest reading in a year. Despite the improvement, the rate remained 3.1 percentage points below its long‑run average.
Finally, US pending home sales fell 2.3% month-on-month in July and 2.2% year‑on‑year, according to the latest update from the National Association of Realtors. Contract signings slipped to their lowest level since January 2026, with month‑on‑month declines recorded across all four major US regions.
Dow Jones - Risers
Johnson & Johnson (JNJ) $271.11 3.33%
Salesforce.Com Inc. (CRM) $196.14 2.71%
Nike Inc. (NKE) $40.06 2.48%
Amgen Inc. (AMGN) $425.28 2.43%
Coca-Cola Co. (KO) $88.82 2.12%
Apple Inc. (AAPL) $310.03 1.75%
International Business Machines Corporation (CDI) (IBM) $232.67 1.67%
Visa Inc. (V) $364.25 1.51%
Chevron Corp. (CVX) $205.74 1.50%
Verizon Communications Inc. (VZ) $48.54 1.00%
Dow Jones - Fallers
Intel Corp. (INTC) $96.68 -6.17%
Caterpillar Inc. (CAT) $840.87 -4.63%
Boeing Co. (BA) $223.06 -1.28%
Goldman Sachs Group Inc. (GS) $1,040.47 -1.03%
Cisco Systems Inc. (CSCO) $111.61 -0.79%
Merck & Co. Inc. (MRK) $135.17 -0.59%
Dow Chemical Co. (DOW) $31.19 -0.48%
Unitedhealth Group Inc. (UNH) $393.93 -0.43%
Home Depot Inc. (HD) $337.49 -0.12%
Dowdupont Inc. (DWDP) $0.00 0.00%
S&P 500 - Risers
Bath & Body Works, Inc. (BBWI) $20.04 6.54%
Intuit Inc. (INTU) $350.41 4.82%
Apache Corp. (APA) $42.37 4.50%
Adobe Systems Inc. (ADBE) $263.14 4.03%
Diamondback Energy Inc. (FANG) $210.02 3.73%
Eli Lilly and Company (LLY) $1,225.73 3.60%
AbbVie Inc (ABBV) $258.92 3.43%
Edison International (EIX) $73.69 3.35%
Johnson & Johnson (JNJ) $271.11 3.33%
Northrop Grumman Corp. (NOC) $589.14 3.32%
S&P 500 - Fallers
Seagate Technology Plc (STX) $903.68 -9.16%
Coterra Energy Inc. (CTRA) $32.56 -8.62%
Brighthouse Financial, Inc. (BHF) $53.64 -8.59%
Akamai Technologies Inc. (AKAM) $115.20 -7.83%
Corning Inc. (GLW) $159.90 -7.68%
Micron Technology Inc. (MU) $940.76 -7.66%
Align Technology Inc. (ALGN) $167.91 -7.39%
CenturyLink Inc. (LUMN) $6.13 -6.84%
Amphenol Corp. (APH) $159.57 -6.61%
Western Digital Corp. (WDC) $496.16 -6.32%
Nasdaq 100 - Risers
Intuit Inc. (INTU) $350.41 4.82%
Adobe Systems Inc. (ADBE) $263.14 4.03%
Gilead Sciences Inc. (GILD) $143.44 3.29%
Netflix Inc. (NFLX) $77.77 2.86%
Incyte Corp. (INCY) $123.47 2.75%
Amgen Inc. (AMGN) $425.28 2.43%
Vertex Pharmaceuticals Inc. (VRTX) $528.19 2.28%
Comcast Corp. (CMCSA) $26.20 2.04%
T-Mobile Us, Inc. (TMUS) $182.75 1.89%
Apple Inc. (AAPL) $310.03 1.75%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $0.34 -13.49%
Baidu Inc. (BIDU) $90.87 -11.69%
Seagate Technology Plc (STX) $903.68 -9.16%
Micron Technology Inc. (MU) $940.76 -7.66%
Align Technology Inc. (ALGN) $167.91 -7.39%
Western Digital Corp. (WDC) $496.16 -6.32%
Intel Corp. (INTC) $96.68 -6.17%
KLA-Tencor Corp. (KLAC) $194.79 -5.64%
Asml Holdings N.V. (ASML) $1,802.98 -4.52%
Lam Research Corp. (LRCX) $327.92 -4.37%
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