US open: Stocks fall as bond yields hit multi‑year highs

18th Aug 2026 14:01

(Sharecast News) - Major indices opened lower on Tuesday as elevated Treasury yields and persistent inflation worries weighed on sentiment, while rising oil prices and a pullback in semiconductor names added further pressure.

As of 1515 BST, the Dow Jones Industrial Average was down 0.11% at 53,403.08, while the S&P 500 shed 0.59% to 7,699.01 and the Nasdaq Composite came out of the gate 1.35% weaker at 26,284.05.

The Dow opened 56.70 points lower on Tuesday, extending losses recorded in the previous session despite gains in the AI and chip sectors, as oil prices and bond yields rose on the back of ongoing geopolitical uncertainty in the Middle East.

As for Tuesday, Treasury yields were in focus again at the open, with the 30‑year Treasury yield last seen at 5.303%, hovering around levels not seen for almost two decades after touching its highest point since June 2007 on Monday.

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 futures were up 1.04% at $85.38 a barrel early on Tuesday, while international benchmark Brent crude futures were up 0.39% at $91.22 a barrel.

On the macro front, US building permits rose in July even as housing starts fell sharply, according to fresh data from the Census Bureau. 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. Regionally, permits strengthened in the Midwest, South and West, but slipped in the Northeast. In contrast, 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.

Elsewhere, 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. Fuel imports dropped 7.2%, led by a 7.5% slide in petroleum, while natural gas prices rose 5.3%. Non‑fuel imports, however, rose 0.4%, driven by higher prices for capital goods, food and beverages, and autos. Despite July's decline, overall import prices were still 5.9% higher year‑on‑year.

Export prices fell 1.3% in July following a 0.7% drop in June. Non‑agricultural export prices slid 1.5%, reflecting lower prices for industrial supplies, metals and chemicals. Agricultural export prices bucked the trend, rising 1% on the month and 5.7% over the year, supported by stronger soybean, food‑preparation and oilseed prices. Over the past 12 months, total export prices were up 8.2%, while non‑agricultural export prices rose 8.5%.

On another note, US industrial production rose modestly in July, with output across the major categories continuing to edge higher, according to the Federal Reserve's latest update. Total production increased 0.2% on the month, matching June's gain, while manufacturing output also advanced 0.2%. On an annual basis, industrial production was 1.1% higher, with factory output up 1.2% year‑on‑year. Mining activity grew 0.2% in July and was 1% above its level a year earlier, while utilities output climbed 0.5% on the month and 0.7% year‑on‑year.

Also from the Fed, 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. Manufacturing utilisation edged up 0.1 percentage point to 76%, while mining also increased 0.1 point to 86.1%, staying 0.9 points above its historical norm. Utilities posted the largest monthly gain, rising 0.2 points to 70%, though the sector continued to operate well below its long‑term average.

Finally, pending home sales fell in July, dropping 2.3% from June 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. On an annualised basis, the Midwest was the only region to show an increase, while the Northeast, South and West all posted year‑over‑year declines.

In the corporate space, Home Depot posted second‑quarter earnings that came in ahead of analysts' expectations, but kept its full‑year guidance unchanged, while the likes of Western Digital, Sandisk, Marvell and Seagate all traded more than 5% lower in pre-market action, weighing on the tech-heavy Nasdaq.

Still to come, La-Z Boy and Toll Brothers were both slated to report earnings after the close.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Salesforce.Com Inc. (CRM) $196.91 3.14%

Johnson & Johnson (JNJ) $269.52 2.96%

Amgen Inc. (AMGN) $424.26 2.35%

Coca-Cola Co. (KO) $88.27 1.65%

International Business Machines Corporation (CDI) (IBM) $231.76 1.53%

Visa Inc. (V) $362.86 1.40%

Travelers Company Inc. (TRV) $369.16 1.29%

Merck & Co. Inc. (MRK) $137.46 1.27%

Verizon Communications Inc. (VZ) $48.60 1.22%

Chevron Corp. (CVX) $204.65 1.15%

Dow Jones - Fallers

Intel Corp. (INTC) $97.32 -5.61%

Caterpillar Inc. (CAT) $856.29 -2.91%

Goldman Sachs Group Inc. (GS) $1,037.01 -1.40%

Cisco Systems Inc. (CSCO) $111.73 -0.76%

Boeing Co. (BA) $224.75 -0.33%

Dowdupont Inc. (DWDP) $0.00 0.00%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Walmart Inc. (WMT) $0.00 0.00%

Procter & Gamble Co. (PG) $143.15 0.15%

JP Morgan Chase & Co. (JPM) $361.35 0.24%

S&P 500 - Risers

Intuit Inc. (INTU) $353.15 5.47%

Bath & Body Works, Inc. (BBWI) $19.73 4.94%

Tapestry Inc. (TPR) $134.80 4.71%

Adobe Systems Inc. (ADBE) $263.98 4.27%

Advance Auto Parts (AAP) $58.80 3.57%

Incyte Corp. (INCY) $124.18 3.48%

Netflix Inc. (NFLX) $78.04 3.25%

Robert Half Inc. (RHI) $43.46 3.25%

Salesforce.Com Inc. (CRM) $197.15 3.14%

HCA Healthcare Inc (HCA) $417.03 3.12%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Seagate Technology Plc (STX) $933.54 -5.82%

Lam Research Corp. (LRCX) $321.90 -5.76%

Keysight Technologies Inc. (KEYS) $341.68 -5.76%

Amphenol Corp. (APH) $161.80 -5.74%

Advanced Micro Devices Inc. (AMD) $480.16 -5.64%

Intel Corp. (INTC) $96.91 -5.61%

Micron Technology Inc. (MU) $957.52 -5.49%

Microchip Technology Inc. (MCHP) $76.53 -5.36%

Align Technology Inc. (ALGN) $171.04 -5.11%

Nasdaq 100 - Risers

Intuit Inc. (INTU) $353.15 5.47%

Adobe Systems Inc. (ADBE) $263.98 4.27%

Incyte Corp. (INCY) $124.18 3.48%

Netflix Inc. (NFLX) $78.04 3.25%

Verisk Analytics Inc. (VRSK) $180.98 3.06%

Paychex Inc. (PAYX) $121.66 2.90%

Amgen Inc. (AMGN) $424.53 2.35%

Gilead Sciences Inc. (GILD) $141.82 2.18%

Booking Holdings Inc. (BKNG) $208.83 2.13%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $516.43 1.57%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Baidu Inc. (BIDU) $94.33 -8.03%