The Prime Daily: 19 August 2026

U.S. stocks extended losses for a third consecutive session, led lower by a sharp pullback in mega-cap technology and semiconductor names.

The Nasdaq dropped 1.33%, the S&P 500 fell 0.69%, and the Dow Jones Industrial Average slipped 0.22%, pulling all three benchmarks further from last week’s record highs. Global bond rout pushes long-term yields to multidecade highs. Rising bond yields sapped risk appetite from the AI trade.

Home Depot posted higher sales and reaffirmed its outlook even as consumers stuck to smaller maintenance projects.

Meta, faces a landmark child-safety trial in California — a legal overhang even as its underlying growth metrics remain strong.

New 50% U.S. tariffs on Canadian goods are set to take effect soon absent a last-minute deal between Trump and Canadian PM Carney.

Government bond yields surged worldwide, with the 30-year U.S. Treasury yield touching an intraday high near 5.33%–5.34% — its highest since 2007. Widening fiscal deficits, inflation concerns, and heavy capex from debt-financed AI infrastructure buildouts are factors competing with sovereign borrowers for capital and reshaping equity valuations. Foreign holders, including those in the UK, China, and Japan, have been paring their Treasury holdings, compounding the sell-off.

Crude climbs as Middle East tensions escalate. Oil extended its advance after the 60-day U.S.-Iran ceasefire expired without a new agreement and Iran shifted to what it called a “fully offensive” military posture, with fresh attacks reported in the Strait of Hormuz.

Gold eased below $4,400 as higher U.S. yields and safe-haven dollar demand outweighed support from Middle East risk aversion.

The rupee weakened by 8 paise to close at 95.68 per dollar. This was primarily driven by higher crude prices amid escalating tensions in West Asia and weakness in domestic equities.

India’s crude oil import bill rose 41% YoY to $13.7 billion in July, primarily due to higher crude prices amid the ongoing crisis in West Asia. Crude import volumes also increased 13% YoY to 21.4 million tonnes, while the Indian basket averaged $82.04 a barrel amid supply disruptions.

Nifty fell for the sixth straight session yesterday, shedding 132 points (−0.54%) to close at 24,154, its lowest level since 28 July 2026.

Technically, Nifty closed below an important cluster support around 24,200. The current fall of over 600 points from the recent peak has retraced more than 50% of the previous upward rally from 23,606 to 24,774 recorded between 24 July and 3 August 2026. Below 24200, the next key support is seen near 24,050, aligning with a retracement of the past rally and a prior gap zone. Resistance has shifted lower to the 24,300–24,350 band, with a stronger supply zone around 24,600.