Daily News 19th Aug 26
Daily News
Asian Markets Sink as Kospi Slides 5.5%; S&P 500 Falls for a Third Day as Bond Yields Hit Multidecade Highs; Gold Holds Near $4,350, Crude Climbs Toward $86 on Hormuz Standoff
19 August 2026
Today in Brief
Asia-Pacific markets sold off, led by South Korea's Kospi dropping 5.54% and the Kosdaq slipping 0.27%, while Japan's Nikkei 225 fell 2.64% and the Topix declined 2.76%; Australia's S&P/ASX 200 slipped 0.39%, mainland China's CSI 300 fell 2.41%, and Hong Kong's Hang Seng edged 0.2% higher. In the U.S., the S&P 500 fell 0.69% to 7,691.76 for a third straight losing session, the Nasdaq Composite dropped 1.33% to 26,289.71 as Western Digital, Sandisk, Marvell and Seagate all slumped, and the Dow shed 116.38 points (0.22%) to 53,343.40, pressured by sovereign bond yields at multidecade highs and elevated oil prices. Gold traded around $4,350 an ounce after dropping nearly 2% the prior session, while crude climbed toward $86 per barrel for a fourth consecutive gain as the US and Iran showed little sign of reopening the Strait of Hormuz. The 30-year Treasury yield touched a fresh 19-year high before pulling back to 5.285%, with the 10-year at 4.706% and the 2-year at 4.175%.
In other news: Trump paused 50% scheduled tariffs on Canada for three days, announcing a "deal" with Ottawa and floating a revival of the Keystone XL pipeline; Trump said no talks are scheduled with Iran even as UAE air defenses detected two ballistic missiles launched from Iran; the Bank of England is expected to hold rates at 3.75% through year-end despite inflation risks; Baidu CEO Robin Li vowed to return the Ernie model to the AI frontier after a quarterly revenue miss; Cerebras launched its new CS-4 server system aimed at speeding AI chatbot inference; a US bankruptcy court delayed to September 9 a hearing on Google's $10 million purchase of Spirit Airlines data amid a flight attendants' union objection; and Meta rejected accusations it designed Facebook and Instagram to addict children as a 29-state trial got underway.
In Asia, South Korea's Kospi dropped 5.54%
In Asia, South Korea's Kospi dropped 5.54%, while the small-cap Kosdaq was 0.27% lower. Japan's Nikkei 225 fell 2.64%, while the Topix declined 2.76%. Australia's benchmark S&P/ASX 200 slipped 0.39%. Hong Kong's Hang Seng index inched 0.2% higher, while mainland China's CSI 300 fell 2.41%. Tech stocks dropped as bond yields in the U.S. and elsewhere scored fresh milestones. The 30-year Treasury yield notched a new 19-year high on Tuesday, while Japan's 10-year bond yield reached its highest level in three decades.
S&P 500 falls for a third day, as elevated global bond yields and oil prices weigh on market
The S&P 500 fell on Tuesday, pressured by a run in sovereign bond yields to multidecade highs amid concerns of persistent inflation and elevated oil prices. A pullback in semiconductor stocks also weighed on the broader market. The broad market index declined 0.69% to 7,691.76 and posted a third consecutive losing session. The Nasdaq Composite was down 1.33% to end at 26,289.71. Western Digital fell 7%, weighing on the Nasdaq. Sandisk dropped 9%. Marvell Technology and Seagate Technology were also down by nearly 8% and more than 9%, respectively. The Dow Jones Industrial Average shed 116.38 points, or 0.22%, and closed at 53,343.40.
Gold traded around $4,350 an ounce on Wednesday after dropping nearly 2% in the previous session
Gold traded around $4,350 an ounce on Wednesday after dropping nearly 2% in the previous session, pressured by elevated global bond yields amid growing fiscal concerns and persistent inflationary pressures. The 30-year US Treasury yield reached a 19-year high this week, while sovereign yields across other major economies also climbed to their highest levels in decades. The precious metal also faced pressure from rising oil prices as the US and Iran showed little indication of reaching an agreement to end the conflict and reopen the Strait of Hormuz in the near term. President Donald Trump said there were no ongoing talks with Tehran, while Iranian forces have intensified attacks on shipping in the Strait of Hormuz. Investors now await minutes from the Federal Reserve's July meeting and remarks from Chairman Kevin Warsh at the annual Jackson Hole symposium for fresh clues on the monetary policy outlook.
Crude oil climbed toward $86 per barrel on Wednesday, extending gains for a fourth consecutive session
Crude oil climbed toward $86 per barrel on Wednesday, extending gains for a fourth consecutive session as the US and Iran showed little indication of reaching an agreement to end the conflict and reopen the Strait of Hormuz, keeping supply concerns elevated. President Donald Trump said there were no ongoing negotiations with Tehran while confirming that the US naval blockade remains in effect. Shipping risks in Hormuz also remain despite Trump's claim that the waterway is open and mines have been cleared, with limited traffic still passing through the strategic route. Iranian forces have intensified hostilities over the past week, while eight attacks on vessels transiting Hormuz, including ships linked to the UAE and Saudi Arabia, have been reported so far this month.
Trump pauses 50% scheduled tariffs on Canada for three days, announces 'deal' with Ottawa
President Donald Trump late Tuesday stateside paused imposing 50% tariffs on certain Canadian imports, shortly before the duties were set to kick in at midnight. In a post on Truth Social, Trump said that this was "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" This announcement comes after Trump and Canadian Prime Minister Mark Carney held trade talks on Tuesday. In his post, Trump also suggested that the Keystone XL pipeline could be "awoken from the grave!" The pipeline refers to an extension of a pipeline system in Canada and the United States. Trump had authorized the project in his first term, but former President Joe Biden had revoked the permits in 2021.
Trump says no talks scheduled with Iran as he teases action in Hormuz Strait
President Donald Trump on Tuesday said the U.S. is not in any talks with Iran and has no plans to start new ones, though he continued to assert that the Strait of Hormuz is open and cleared of water mines. Trump's claim on Truth Social abruptly contradicted his prior insistence that Washington and Tehran are in active negotiations, even as Iran has repeatedly stated that no such talks are occurring. Later Tuesday, air defenses in the United Arab Emirates detected two ballistic missiles launched from Iran toward the UAE, according to that country's Ministry of Defense. The first missile fell outside the UAE's territorial waters, and the second missile fell within territorial waters, the defense ministry said. Trump, in his Truth Social post on Tuesday morning, said, "There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran."
30-year Treasury yield tops 5.33%, new 19-year high, on inflation and spending concerns
Treasury yields pulled back slightly on Tuesday after long-dated bonds hit their highest level in almost two decades amid a worsening U.S. fiscal situation and persistently higher inflation. The yield on the U.S. 30-year Treasury bond fell more than 2 basis points to trade at 5.285%. It hit a fresh 19-year high earlier in the day. The 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — was more than 1 basis point lower at 4.706%. The yield on the 2-year Treasury note, which typically reacts in line with short-term Federal Reserve interest rate decisions, moved down less than 1 basis point to 4.175%. One basis point equals 0.01%, and yields and prices move inversely to one another.
Bank of England to hold rates for remainder of year despite inflation risks
The Bank of England will leave interest rates unchanged at 3.75% for the rest of the year, according to a strong majority of economists polled by Reuters, clinging to a view they've held since the U.S.-Israeli war on Iran began in late February. The UK economy has remained mostly resilient since then, with little evidence of any spillover from higher energy prices into the broader economy. That has given the central bank room to stay on the sidelines. But three of the nine Monetary Policy Committee members voted for an immediate rate rise to 4.0% at the July meeting, up from two in the previous meeting. Inflation likely rose to 2.9% in July from 2.6% in June, further above the BOE's 2% target, according to a separate Reuters poll ahead of official data due on Wednesday. But in its latest set of quarterly forecasts, the BOE expects inflation to rise above 3% later this year.
Baidu CEO vows to return Ernie to AI frontier as revenue miss sinks shares
Baidu CEO Robin Li vowed on Tuesday to bring the company's Ernie large language model back to the frontier of AI, after the Chinese tech company posted quarterly revenue that missed Wall Street estimates. "In a market like this, we believe long-term competitiveness ultimately comes down to sustained technology investment, application-driven approach, and patience," Li told analysts, adding that Baidu would keep investing in top talent and technology to regain its edge. His remarks come as Baidu faces mounting questions over its position in China's AI race. Its Ernie large language model has gone months without a major upgrade, while competitors such as Alibaba and Moonshot have continued to roll out newer versions of their models. The competitive pressure compounds challenges in Baidu's core business.
Cerebras launches new server chip and system designed to speed AI chatbots
Cerebras Systems announced on Tuesday a new version of its server hardware that includes its dinner-plate-sized chips that it says will speed AI chatbot queries. Cerebras makes AI hardware and chips that compete with Nvidia and targets the portion of AI called inference, the computing process of generating an answer in a chatbot such as Anthropic's Claude. The new system, called the CS-4, is a server rack powered by three of the large chips the company designs, which Cerebras said translates into better performance. The hardware is based around the company's Nexus server architecture, which includes pluggable modules that house the chips. In part, Cerebras' chips gain a speed advantage because they are large enough to avoid the energy and slowdown of moving data from one chip to another.
US court delays hearing on Google's purchase of Spirit Airlines data as union objects
A U.S. bankruptcy court on Tuesday delayed to September 9 a hearing to approve the sale of internal business data from bankrupt Spirit Airlines to Alphabet's Google for $10 million. The adjournment of the hearing, which was initially scheduled for Wednesday, comes as the Association of Flight Attendants-CWA (AFA), which represents Spirit cabin crew, filed an objection to the sale. The data on the block includes Spirit Airlines' employee emails, Microsoft Teams messages, spreadsheets, and calendars, as well as marketing, productivity, and operations data. Google plans to use the data for product development and training its AI models. The AFA said it is seeking restrictions on the sale of flight attendant employee data and further protections for employees if the sale is approved.
Meta rejects claims it sought to hook children to Facebook, Instagram as landmark trial begins
Meta Platforms rejected accusations by U.S. states that it intentionally sought to addict children to its Facebook and Instagram platforms in pursuit of profit, at the start of a trial that could reshape some of the most popular apps on the planet. A bipartisan group of 29 U.S. states is suing Meta, seeking potentially tens or hundreds of billions of dollars in penalties and changes to how Meta does business. Four lead states — California, Colorado, Kentucky and New Jersey — accused Meta of designing Facebook and Instagram to hook young users, fuelling anxiety, depression and even suicide, and misleading consumers about the platforms' safety. All 29 states accused Meta of violating federal law by improperly collecting and using children's personal data.
