August 18
News
US stock indices closed lower on Tuesday amid a selloff in chipmakers and elevated bond yields.
The S&P 500 fell 0.7%, the Nasdaq 100 lost 1.7% and the Dow shed 116 points.
Long-term yields slipped from recent peaks but remained near multi-year highs as inflation risks and surging bond issuance by AI companies fueled uncertainty over term premia. Inflation concerns were magnified by further increases in energy prices as the US signaled a prolonged blockade of Iranian tanker exports.
Chipmakers tied to the AI trade posted sharp losses, with Nvidia down 2.3%, Broadcom shedding 3.2%, Micron losing 7% and AMD retreating 4.3%. Intel tumbled 6.6%, while Sandisk sank 9%. Other major AI companies also closed lower, with Meta losing 4.4%, Tesla down 0.7% and Oracle shedding 2.7%.
Credit-sensitive financial stocks came under pressure, with Goldman Sachs (-1%) and Citigroup (-0.6%) closing lower. Home Depot shed 0.3% despite beating earnings estimates amid elevated borrowing and housing costs.
Crude oil rose on Tuesday as uncertainty over the Strait of Hormuz continued to support prices. Tensions remain elevated, with the US and Iran showing little sign of reaching an agreement over control of the key shipping route. President Donald Trump said Washington is not currently holding or planning talks with Tehran, while confirming that the US naval blockade remains in place. Despite his claim that Hormuz is open and mines have been cleared, shipping risks persist.
News
Atlanta Fed GDPNow downgrades Q3 growth estimate to 4.03% vs 4.31% prior
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July industrial production +0.2%. | Forex
Capacity utilization 76.3% vs 76.1% prior
Over the past 4 weeks, US 10 Year Note Bond Yield gained 15.20 basis points, and in the last 12 months, it increased 44.00 basis points.
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Diesel is up 2.2ct to $5.467 vs $5.088 a month ago
Clima
Bond Yields Are Hitting Multidecade Highs Around the World
Zero
Japanese Bond Yields Soar, Unrealized Losses At Life Insurers Hit $200 Billion
Peak
A CBS poll found 58% of Democrats view socialism favorably compared with 32% for capitalism. An Economist/YouGov survey showed 62% would support a Democratic Socialist candidate.
RusTruth
Russia Blew Up Britain's Missile Plant
Reporting from The Sunday Times acknowledged that multiple British defense technology firms are directly manufacturing long-range strike UAVs deployed against Russian targets, intensifying discussions among military analysts regarding the expanding direct involvement of European defense manufacturers.
Merco
Moscow warns the UK of “consequences” over British drones used against its territory
John
Why Bessent’s “Unprecedented” Sanctions on Iran Will Fail
Bessent is reaching for a tool whose power depends on a world that no longer exists. The economic isolation that once brought Iran to the negotiating table was possible because the walls around Iran were sealed on every side — and, just as importantly, because the money still had to move through pipes the United States controlled. Today those walls have doors — to Russia, to China, and, since this spring, to Pakistan — and the money has found a channel that bypasses Washington’s plumbing entirely.
Arm
The Collapse of the Rule of Law Confirms the Fall of a Nation by 2032
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Debt Rattle
TRUMP: “For you to pay a tiny little bit more for your gasoline, just remember you're doing it so that a very evil country cannot have a nuclear weapon … You're at $4/gallon. It's okay. I'll never apologize. I did the right thing.”
Israel careens toward one of the most impactful elections in its history
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