Daily Market Summary - August 19, 2026
Market Overview
On August 19, 2026, the US stock market showed a modest recovery after initial declines. The S&P 500 rose by 0.3%, while the Dow Jones increased by 0.2%. However, the Nasdaq 100 experienced a slight decrease of 0.1%. In contrast, gold prices surged by approximately 3.5%, and the US dollar fell by 0.8%.
Key Market Drivers
The significant movements in the market can be attributed to an announcement by Scott Bessent, the US Treasury Secretary. He revealed plans to double the US long-term bond buyback operations, effective from September 9, 2026, and continuing at least until November 4, 2026. This initiative will primarily focus on purchasing long-term Treasury bonds.
The announcement led to a notable decline in bond yields across the curve, particularly at the long end. This is seen as positive for the stock market for two main reasons: it diminishes the appeal of bonds as a safe investment alternative and may lower financing costs for businesses. Despite these changes, bond yields remain near multi-year highs, with 30-year bonds only 14 basis points away from a 19-year peak.
Stock Market Highlights
The Treasury Department's actions contributed to a slight rebound in the stock market. Notably, Moderna's stock price skyrocketed by over 150% following the announcement of positive results from a late-stage trial for a personalized cancer vaccine. This vaccine, in combination with Merck's Keytruda, showed improved effectiveness in reducing melanoma recurrence compared to immunotherapy alone. Moderna's CEO, Stephane Bancel, indicated that the vaccine could receive approval as early as 2027.
Additionally, Estee Lauder's shares rose by 17% after the company reported impressive quarterly results, exceeding revenue expectations and showing positive year-on-year growth after three challenging quarters. The company also raised its expectations for adjusted operating margins and announced plans to reduce its workforce by nearly 10,000 positions.
European Market Performance
In the European markets, there were no significant movements. The German DAX and French CAC40 ended the day nearly unchanged, while the Spanish Ibex 35 saw a slight decline of 0.4%. Conversely, the Polish WIG20 index stood out with a gain of 1.7%.