US stocks fall this week as rising Treasury yields, US debt worries, inflation and Iran tensions weigh on the S&P 500, Nasdaq and Dow Jones.

Updated on: Aug 21, 2026, 19:10:58 IST

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US stock futures moved higher on Friday after US markets fell sharply on Thursday. However, the main stock indexes were still expected to end the week lower. Investors are worried about rising government bond yields and growing geopolitical tensions.

The S&P 500 and Nasdaq were heading for their first weekly fall after three weeks of gains. The Dow Jones Industrial Average was facing a bigger weekly loss. It was on track for its biggest weekly drop since mid-March, Reuters reported.

Rising Treasury yields hurt US stocks

A sharp increase in long-term US Treasury yields has made investors more cautious this week. Higher yields can make borrowing more expensive for the government and companies while also making bonds more attractive compared with stocks.

The yield on the 30-year US Treasury bond climbed to its highest level since 2007 earlier this week. The move raised concerns about the US government's growing debt, higher financing costs and continued inflation pressures.

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