Market Open: Stocks Fall, Bonds Slump as 30-Year Yield Hits 20-Year High • 8/18/26

• Stocks (Dow, S&P 500, Nasdaq) are falling, with a 'sea of red' for chipmakers.
• Global bond slump: 30-year Treasury yield hit a 24-year high (5.33%), 10-year Treasury at 4.74%, and Japanese, French, and German 10-year bonds at multi-decade highs.
• Disappointing housing starts for July, down 12.4% overall and single-family starts down 16% year-over-year, due to high mortgage rates (near 7% for 30-year fixed).
• Home Depot held its outlook steady amid a 'frozen housing market,' with shares ticking higher despite broader market weakness.

The market opened with stocks falling and a global bond slump, driven by concerns over inflation, government spending, and rising interest rates. Disappointing housing starts further highlighted economic weakness, with mortgage rates remaining high. European Central Bank economists also warned of a looming market correction due to AI-driven over-optimism.