S&P 500, Nasdaq Fall for Third Straight Session Amid Rising Bond Yields and Oil Prices

The broad market pullback on August 18 reflected mounting pressures from a global bond selloff pushing long-term yields to multidecade highs and persistently elevated oil prices.

Investors cited concerns over persistent inflation, widening fiscal deficits, and heavy AI-related capital spending as key drivers of higher borrowing costs across developed economies.

The selloff hit technology and growth stocks hardest, with the Nasdaq posting its largest decline among the majors.

Semiconductor names led the downside, including sharp drops in Western Digital, Marvell Technology, Seagate Technology, and Sandisk shares, as the PHLX Semiconductor Index fell more than 5%. Energy stocks provided relative resilience as traders sought cover amid Brent crude futures advancing.

Home Depot's earnings beat offered a modest positive note in retail but failed to lift broader sentiment given the company's unchanged full-year guidance amid a sluggish housing market.

The third consecutive losing session for the S&P 500 underscores how macro factors are overriding corporate fundamentals in the near term.

Traders should monitor upcoming inflation data, central bank commentary on rate paths, and any escalation in geopolitical tensions that could further support oil prices. Watch 10-year Treasury yields for signs of stabilization and key support levels on the Nasdaq Composite around 26,000.

Sector rotation into defensives or energy may accelerate if yields remain elevated. Volatility measures such as the VIX could spike on further bond market turbulence, while AI-related spending announcements from hyperscalers remain a wildcard for tech valuations.