U.S. stocks fell at the opening bell due to rising Treasury yields

U.S. stocks fell at the opening of trading on August 20, as yields on long-term Treasury bonds resumed their upward trend following a sharp decline in the previous session. The day before, the U.S. Treasury had reassured the market with its decision to double the volume of government debt buybacks, but the effect was short-lived.

The S&P 500 fell 0.2% at the open; the Nasdaq Composite dropped 0.5%; and the Dow Jones Industrial Average fell nearly 0.67%.

The yield on 10-year bonds jumped by more than 5 basis points to 4.704%, while the yield on 30-year bonds rose by about the same amount, to 5.244%.

CNBC notes that rising oil prices are putting additional pressure on the stock market amid escalating tensions between Iran and the U.S. Late Wednesday evening, President Donald Trump wrote on the social media platform Truth Social that the U.S. would launch “the most devastating economic operation ever undertaken against any country” against Iran. “This will be economic warfare and isolation on an unprecedented scale,” he said.

WTI crude oil futures rose 2.7% and surpassed $88 per barrel. Brent crude oil futures, the benchmark, gained 2.6% and were trading at $94 per barrel.

This article was AI-translated and verified by a human editor