Stock Market Recap — Aug 18, 2026
Chip stocks tumble while Gulf tensions lift oil
Risk-off trading centered on a severe semiconductor selloff, rising long-end yields and widening commodity-supply risks. Late headlines softened the setup by delaying Canadian tariffs and easing Chinese restrictions on Nvidia chips. • Chips/Rates: Nasdaq futures opened weak and the Philadelphia Semiconductor Index later fell more than 5%, with every member lower, as the 10-year yield reached a 19-month high of 4.75%. • Gulf/Oil: Attacks on shipping near Oman and the UAE's suspension of Iran trade pushed WTI above $85. Record diesel margins reinforced energy strength as inventories stayed exceptionally tight. • Trade/Canada: Trump delayed 50% tariffs on about $20 billion of Canadian goods for three days, reversing an earlier deterioration in negotiations. • AI/China: Beijing allowed ByteDance and Tencent to import about 10,000 Nvidia H200 chips each, although approval requirements remained in place. • Macro/Housing: July housing starts dropped 12.4%, with single-family construction at its weakest since November 2022, adding a growth warning even as import prices unexpectedly declined. • Klarna: Shares sank after the company cut its 2026 revenue and gross merchandise volume forecasts despite reporting a quarterly profit.
Intraday Updates
- 00:00 ET: AI hedge fund loses $30 billion as copper supply squeeze intensifies (40 stories)
- 05:12 ET: Nasdaq futures slide after projectile strikes vessel near Hormuz (40 stories)
- 09:33 ET: Housing starts slump as Klarna cuts its outlook (100 stories)
- 14:10 ET: Chip selloff deepens as five grain ships are struck near Russian ports (64 stories)
- 19:00 ET: UAE suspends Iran trade as Canada tariff talks falter (60 stories)
- 23:49 ET: Trump pauses Canada tariffs as China eases Nvidia H200 restrictions (49 stories)