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Stock Market News for Aug 25, 2026

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U.S. stocks ended mostly lower on Monday, triggered by a tech sell-off, and investors continued to assess fresh economic pressures created by the United States against Iran as tensions in the Middle East continued. The S&P 500 and the Nasdaq ended lower, while the Dow ended in positive territory.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.3%, or 40.15 points, to end at 53,417.16 points.

The S&P 500 declined 0.3%, or 1.51 points, to close at 7,652.86 points. Tech stocks were the worst performers, while consumer staples and financials were the biggest gainers.

The Information Technology Select Sector SPDR (XLK) declined 1.8%. The Consumer Staples Select Sector SPDR (XLP) gained 1.7%, while the Financials Select Sector SPDR (XLF) rose 1.3%. Eight of the 11 sectors of the benchmark index ended in positive territory.

The tech-heavy Nasdaq slid 0.8%, or 200.26 points, to finish at 25,980.19 points.

The fear gauge, the CBOE Volatility Index (VIX), was up 4.76% to 15.85. Decliners outnumbered advancers on the NYSE by a 1.08-to-1 ratio. On the Nasdaq, a 1.5-to-1 ratio favored declining issues. A total of 14.36 billion shares were traded on Monday, lower than the last 20-session average of 16.5 billion.

On the NYSE, there were 214 new highs and 118 new lows. On the Nasdaq, there were 87 new highs and 98 new lows. On the S&P 500, there were 17 new 52-week highs and seven new lows.

Tech Stocks Suffer Again, Bond Yields Ease

Tech stocks, which have been suffering over the past month, took a beating once again on Monday. Chip stocks dragged down the S&P 500 and the Nasdaq as investors spiraled out of riskier assets and took refuge in defensive areas.

Shares of Micron Technology, Inc. ((MU - Free Report) ) slid 5.8%, while Broadcom Inc. ((AVGO - Free Report) ) ended 2.6% lower on Monday. Micron Technology has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Other tech stocks also suffered, with Sandisk Corporation ((SNDK - Free Report) ) and Seagate Technology Holdings plc ((STX - Free Report) ) each declining 6.5%.

However, bond yields eased on Monday following a report that Treasury Secretary Scott Bessent could use the department’s nearly $1 trillion General Account to help finance bond buybacks.

The 10-year Treasury yield dropped over 3 basis points to end at 4,704%, while the 30-year Treasury yield fell more than 4 basis points to 5.234%. The 30-year Treasury yield reached 5.3% last week to hit a 20-year high.

A rise in bond yields globally due to fears of the Middle East conflict extending for a longer period, which could keep oil prices higher and result in a rise in inflation, has been weighing on stocks lately.

Trump Pressures Iran, Canada

Monday’s moves came as President Donald Trump threatened to expand sanctions on nations doing trade with Iran in what he called “economic D-Day". However, he finally didn’t impose penalties on those countries.

Separately, Trump said that the United States will raise tariffs on imports of “all Cars, Trucks, both large and small, Automotive Parts, and Steel” from Canada to 50%. The new tariffs will take effect Jan. 1, 2027.

Investors will now be looking forward to the speech from Federal Reserve Chairman Kevin Warsh at the Jackson Hole Economic Policy Symposium this week, as well as the quarterly results from NVIDIA Corporation ((NVDA - Free Report) ), which could act as a catalyst for the broader market.

No major economic data was released on Monday. 

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