Nasdaq Plunges Over 1% Amid Rising Oil Prices and Treasury Yields

The Nasdaq Composite index fell by over 1% on August 18 as investors reassessed their outlook for inflation, borrowing costs, and Federal Reserve policy amid renewed geopolitical risks.

The decline was driven in part by a sharp move higher in longer-dated U.S. Treasury yields, with the 30-year yield touching its highest level since 2007 at 5.3371% before easing slightly.

Higher yields can put pressure on growth and technology stocks as they increase borrowing costs and reduce the relative attractiveness of future earnings.