Bond market worries resurface, US stocks tumble: S&P 500 down 0.9%, Dow loses 703 points

Published Aug 20, 05:13 AM UTC

On August 19, 2026, US stocks fell sharply as bond market concerns resurfaced, reversing a brief relief rally. The S&P 500 dropped 0.9%, the Dow Jones Industrial Average lost 703 points (1.3%), and the Nasdaq composite fell 1%. The selloff was driven by rising oil prices, persistent inflation fears, and the US national debt surpassing $40 trillion. Treasury Secretary Scott Bessent's announcement to double planned purchases of long-term Treasurys had provided only temporary relief. The 10-year Treasury yield had recently hit its highest level in over a year, and the 30-year yield returned to 2007 levels. Additionally, Brent crude oil prices climbed 2.4% to $93.78 amid uncertainty over Iran's conflict and oil tanker access to the Persian Gulf. President Donald Trump threatened Iran with economic action. Walmart also contributed to market weakness on concerns about its upcoming profits.