Market Report, 2026-08-18

The market is not having a good time this Tuesday. Alongside the official expiration of the agreement between the U.S. and Iran yesterday—which is likely more symbolic than tangible, considering the two sides effectively broke the agreement weeks ago—we also have the slump in global long-term government bond markets and looming tariffs on Canadian goods.

The global bond market has been selling off for the past few months, with government bond yields in many major economies surging to multi-decade highs. The U.S. 30-year Treasury yield, for example, reached 5.3%, a level not seen since 2007. Stock prices had continued moving higher because of strong momentum in AI and optimism surrounding monetary policy, but geopolitical shocks outweighed all other factors today.

The Dow Jones Industrial Average declined 116 points to 53,343. The NASDAQ retreated 1.33% to 26,290. The S&P 500 ended the day down 0.69% at 7,692. The energy sector continued to outperform, with oil prices expected to remain higher for longer, while defensive sectors such as healthcare and consumer staples posted solid returns. Most other sectors, led by technology, ended the day in the red.

The 5-year Treasury yield and the 10-year Treasury yield stayed nearly unchanged, declining by 1 basis point and 2 basis points to 4.36% and 4.7%, respectively. This is not entirely good news, however, considering that rates are already high.

Today’s industrial data generally provided a positive outlook. Pending home sales, however, declined drastically after having already slumped in the previous reading, which is starting to look like a cause for concern.

We will be watching tomorrow’s Federal Reserve meeting minutes for more insight into monetary policy. Adams Wealth Advisor will keep you updated.