Stocks Slip as Bond Yields Rise on Inflation Fears:
Stocks declined last week as oil prices and bond yields rose, stoking inflation concerns among global investors.
The S&P 500 Index fell 1.43%, the Nasdaq Composite Index dropped 2.05%, and the Dow Jones Industrial Average slipped 0.85%. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 0.4%.1,2
Bond Yields Up, Stocks Under Pressure
Bond yields spiked at the start of the week, putting a squeeze on stock prices. The yield on the 30-year Treasury bond hit a 19-year high.
Markets continued their slide on Tuesday as investors fretted over inflation. Yields on bonds around the world rose to multi-decade highs.3,4
Stocks steadied, and bond yields fell midweek as investors responded to the Treasury Department’s announcement that it would buy back long-term debt to help stabilize interest rates. However, the Wednesday morning rally petered out as the session progressed into the afternoon.4,5
Stocks rebounded to finish a tough week on a positive note despite rising oil prices.7
A Bee in the Bonnet
Last week, yields on bonds issued by sovereign governments around the world rose to multi-year highs, including in Japan and throughout Europe.
Investors in these bonds decided they needed higher yields to compensate for ongoing global issues. As a result, the cost to borrow money went up. And because bond prices and yields move in opposite directions, the value of these bonds fell.
The Treasury Department stepped in on Wednesday to say that it would double the size of its current repurchases of longer-term (10- to 30-year) Treasury debt. It’s uncertain how the move could influence markets.8
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, August 21, 2026
2Investing.com, August 21, 2026
3CNBC.com, August 17, 2026
4CNBC.com, August 18, 2026
5CNBC.com, August 19, 2026
6WSJ.com, August 20, 2026
7WSJ.com, August 21, 2026
8CNBC.com, August 19, 2026
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