GLOBAL STOCKS HEAD FOR WORST WEEK SINCE MID-JULY

Developing story: Stock indexes, bond yields, oil prices, the dollar and safe-haven assets may change as U.S. trading and Jackson Hole positioning continue.

Global stocks were set for their biggest weekly fall since mid-July on Friday as high oil prices, rising long-dated bond yields and uncertainty over U.S. Treasury support kept investors cautious. Reuters reported that MSCI’s world stock index was poised for its worst weekly drop in more than a month, while the STOXX 600 was heading for its steepest fall since early July.

The pressure began in bond markets. U.S. government bond yields resumed their climb after the Treasury’s surprise expansion of long-bond buybacks brought only brief relief. Reuters reported that the 30-year U.S. Treasury yield traded around 5.25 percent, while the 10-year yield was near 4.70 percent.

Higher yields matter because they raise borrowing costs for governments, households and companies while reducing the present value of future earnings. That is especially important for technology stocks and AI infrastructure companies, whose valuations depend heavily on long-term growth and large capital spending.

Oil added a second source of market strain. Brent crude traded around $94 a barrel and was up more than 5 percent for the week as the U.S.-Iran conflict continued to disrupt shipping through the Strait of Hormuz. Higher oil prices feed inflation concerns and can force central banks to remain tighter even when growth shows signs of weakening.

The Treasury intervention raised a new concern in currency markets. Reuters separately reported that expanded buybacks revived fears that if Washington tries to restrain long-term yields while debt rises, the dollar may absorb the adjustment. The dollar was heading toward a three-month low and was down nearly 1 percent for the week against major currencies.

Gold and bitcoin benefited from the pressure on bonds and the dollar. Reuters reported that gold touched its highest level in almost three months, while bitcoin was on track for its largest weekly gain in two and a half years. Those moves reflect investor interest in alternatives when confidence in government debt and currency stability weakens.

Equities still had some support from corporate earnings, and U.S. futures were positive early Friday. But the broader market tone remained fragile. Nvidia earnings and the Federal Reserve’s Jackson Hole symposium now loom as tests of whether AI optimism and monetary policy credibility can stabilize sentiment.

What is confirmed is that global stocks were headed for their weakest week since mid-July while oil and long bond yields remained elevated. What remains unresolved is whether markets settle after Treasury’s buyback intervention or continue testing Washington, the Fed and the AI trade with higher yields and weaker risk appetite.

Fact-check date: August 21, 2026. Article type: News. Sources: Reuters; U.S. Department of the Treasury; Federal Reserve. Developing note: Stock indexes, bond yields, oil prices, the dollar and safe-haven assets may change as U.S. trading and Jackson Hole positioning continue.