The S&P 500 declined 1.43 percent, while the Nasdaq slid 2.05 percent. The Dow ended the week down 0.85 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 0.40 percent.¹ ²
Bond Yields Rise, Stocks Under Pressure
Bond yields jumped at the start of the week, putting pressure on stocks. The yield on the 30-year Treasury bond reached a 19-year high as investors weighed inflation concerns and rising yields around the world.
Markets continued lower Tuesday as government bond yields climbed to multi-decade highs in several major markets.³ ⁴
Stocks stabilized midweek as bond yields pulled back following the Treasury Department’s announcement that it would increase purchases of longer-term Treasury debt. The initial rally faded later in the day, however.⁵ ⁶
Stocks rebounded Friday to finish the week higher despite another rise in oil prices.⁷
Global Bond Yields Rise
Bond yields rose last week across several major markets, including Japan and Europe, as investors demanded higher yields amid concerns about inflation, government borrowing, and the global economic outlook.
Higher yields mean higher borrowing costs, while bond prices generally move in the opposite direction. As yields rose, bond prices fell.
The Treasury Department announced Wednesday that it would double the size of its current repurchases of longer-term Treasury debt, covering maturities from 10 to 30 years. The potential impact of the move on interest rates and the broader bond market remains uncertain.⁸
Economic Data to Watch
Tuesday: S&P Cotality Case-Shiller Home Price Index. New Home Sales. Consumer Confidence (Conference Board).
Wednesday: Durable Goods. Gross Domestic Product (GDP), 2nd estimate. Personal Consumption Expenditures (PCE) Index.
Thursday: Weekly Jobless Claims. Trade Balance in Goods. Wholesale Inventories. Retail Inventories.
Friday: Consumer Sentiment (U. Michigan).
Source: Investor’s Business Daily - Econoday economic calendar: August 21, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be reliable. Forecasts and forward-looking statements are based on assumptions and may not materialize. Forecasts are also subject to revision.
Upcoming Earnings Reports
Tuesday: Intuit Inc. (INTU)
Wednesday: Nvidia Corporation (NVDA), CrowdStrike (CRWD), Salesforce, Inc. (CRM), Synopsys, Inc. (SNPS)
Thursday: Marvell Technology, Inc. (MRVL), Autodesk, Inc. (ADSK)
Source: Zacks, August 21, 2026. Companies mentioned are for informational purposes only. This should not be considered a solicitation for the purchase or sale of securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.
Footnotes And Sources1. WSJ.com, August 21, 2026
2. Investing.com, August 21, 2026
3. WSJ.com, August 17, 2026
4. CNBC.com, August 18, 2026
5. CNBC.com, August 19, 2026
6. CNBC.com, August 20, 2026
7. WSJ.com, August 21, 2026
8. CNBC.com, August 19, 2026
Source: YCharts.com, August 22, 2026. Weekly performance is measured from Monday, August 17 to Friday, August 21. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.