Stock Market News From Aug. 19, 2026: Dow, S&P 500, Nasdaq Rise; Yields Fall; Micron, Moderna, Merck, More Movers; Fed Minutes
The stock market rode the bond market’s coattails en route to its first gain in four sessions.
The Dow Jones Industrial Average rose 120 points, or 0.2%. The S&P 500 was up 0.2%. The Nasdaq Composite gained 0.2%.
News that the Treasury Department will at least double the size of buyback operations for longer-duration bonds sent bond prices rallying.
The rally on the long end of the bond market sent the yield on the 10-year Treasury note down to 4.65%. The 30-year yield dropped to 5.19%. For the 30-year yield, it was the largest decline since Oct. 10, 2025, according to Dow Jones Market Data.
Selling in artificial intelligence infrastructure stocks continued, but the rest of the market managed modest gains. Magnificent Seven and software stocks also countered chip stock selling.
Health care, led by Moderna on a cancer vaccine breakthrough, and consumer discretionary and materials were the top sectors. Industrials and tech, which both have plenty of AI plays, were the biggest laggards.
Minutes from the Federal Open Market Committee highlighted the divide among central bankers on whether interest rates may need to be raised to fight inflation soon, but stocks mostly shrugged off the release.
