US Stocks Fall as Rising Treasury Yields Pressure Tech Shares

U.S. technology stocks retreated on August 24, 2026, as a surge in long-term Treasury yields and policy announcements from Washington pressured high-valuation hardware and artificial intelligence companies.

The benchmark S&P 500 slipped 1.4 percent following three consecutive weeks of gains. Selling hit datacenter equipment makers and chipmakers particularly hard as borrowing costs jumped, with the 10-year Treasury yield touching a 20-month peak of 4.75 percent and the 30-year yield reaching 5.33 percent.

Treasury Secretary Scott Bessent responded to market conditions by expanding long-dated debt purchases to retire bonds at a discount. However, the Treasury must refinance using shorter-term debt at higher interest rates, raising market concerns over fiscal pressure as the U.S. national debt surpassed $40 trillion.

The dollar fell to a three-month low following the Treasury moves, prompting a rally in metals, energy, and digital assets. Copper miner Freeport-McMoRan reached a new all-time high, while healthcare stocks also surged following positive clinical trial data for an mRNA-based cancer vaccine from Moderna.

Market participants expect potential volatility from upcoming geopolitical updates, potential sanctions against Iran, and Federal Reserve Chair Kevin Warsh's scheduled address in Jackson Hole, Wyoming.