Stocks mostly drop as Mideast hopes dim, interest rates rise

Traders work on the floor of the New York Stock Exchange during morning trading on Aug 18, 2026 in New York City. (Photo: AFP/Michael M. Santiago) 19 Aug 2026 01:26AM (Updated: 19 Aug 2026 05:13AM) NEW YORK: Stock markets mostly fell on Tuesday (Aug 18) after a US-Iran truce expired with no progress towards reopening the Strait of Hormuz, adding to fears that higher energy prices will drive up inflation. Those inflation worries drove government bond yields to their highest levels in almost two decades, further undermining stocks.While soft US data this month has eased concerns that the Federal Reserve will raise interest rates soon, traders still expect inflation to remain above central bank targets for some time as the Middle East crisis drags on and crude stays stuck around US$90 a barre