Bond Selloff Drives Risk Aversion, US-Iran Peace Prospects Dim | The Opening Trade 8/18/2026

Stocks fell due to a bond selloff and rising oil prices, contributing to overall risk aversion. Equity markets are struggling because of high global borrowing costs, which are driven by inflation and government spending needs. Furthermore, diminishing prospects for peace between the US and Iran reinforce expectations that central banks will tighten monetary policy.