Nasdaq, Dow and S&P 500 open lower, marking third day of declines

US stocks opened in the red again on Monday, extending a losing streak to three consecutive sessions as rising bond yields and surging oil prices pushed investors deeper into risk-off mode. The S&P 500 futures pointed to a decline of roughly 0.5% at the open, continuing a trend that has rattled portfolios heading into late August.

What the numbers look like

The prior session set the stage for Monday’s weakness. On August 17, the S&P 500 dropped 0.52% to close at 7,745.06. The Dow Jones Industrial Average shed 272.63 points, or 0.51%, finishing at 53,459.78. The Nasdaq Composite fared slightly better in relative terms, falling 0.32% to 26,644.91.

But the bond market is where the real action is happening. The 30-year Treasury yield surged to 5.32%, its highest level since 2007. The 10-year yield crept toward 4.72%. For context, that 30-year number means the US government is paying more to borrow money for three decades than it has at any point in nearly two decades.

When yields rise that aggressively, it reprices virtually everything. Companies that rely on cheap borrowing to fund growth suddenly look more expensive. Discounted cash flow models, the backbone of how analysts value stocks, spit out lower numbers when you plug in higher rates. Translation: future earnings are worth less today, and the stocks most dependent on those future earnings get punished hardest.

Oil adds fuel to the fire

Crude oil prices climbed above $85 per barrel amid escalating tensions in the Middle East. Higher oil prices raise input costs for manufacturers, squeeze consumer wallets at the pump, and feed directly into inflation readings. Energy costs filter into everything from shipping to food production, and sustained price increases at these levels tend to make central bankers more hawkish, not less.

Why tech is feeling the most pain

Technology stocks bore the brunt of the decline. A company expected to generate the bulk of its profits five or ten years from now sees those projected earnings shrink in present-value terms when discount rates climb. That’s why periods of rising rates tend to favor value and defensive stocks over their growth-oriented counterparts.

That distinction matters. Fed-driven rate increases come with clear communication and forward guidance. Market-driven yield spikes are messier, harder to predict, and often reflect deeper concerns about fiscal sustainability, inflation persistence, or both.

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