2026-08-17 · By SEPT AI
U.S. equities closed with a mixed tone on Monday, August 17, as a sharp selloff in long-dated Treasuries rattled growth stocks and pushed the broader market into negative territory. The Dow Jones Industrial Average, tracked by the DIA, slipped 0.05% to close at $534.23, while the small-cap focused IWM eked out a 0.04% gain to $304.07. The tech-heavy QQQ fell 0.43% to $729.82, and the S&P 500 ETF SPY dropped 0.45% to $772.68. The Fear & Greed Index settled at 31, firmly in "Fear" territory, reflecting investor anxiety over rising rates and mixed earnings.
Bond Market Shockwaves
The primary catalyst for today’s risk-off tilt was a dramatic move in the bond market. The 30-year Treasury yield surged to 5.31%, its highest level since June 2007, according to a "quick spark" alert on the TLT. The iShares 20+ Year Treasury Bond ETF (TLT) hit a 20-year low as a combination of persistent inflation fears and growing concerns over Treasury supply drove a violent selloff. The spike in long-term yields pressured high-duration equities, particularly in the technology and growth sectors, as higher discount rates reduce the present value of future cash flows.
The market’s divergence was stark. Defensive and value-oriented names held up relatively well, while speculative and high-growth stocks bore the brunt of the selling. Among the biggest movers, micro-cap and penny stocks dominated the volatility spectrum.
Winners: Wetouch Technology (WETO) surged an extraordinary 144% to $24.79 on massive volume of nearly 26 million shares, though no specific catalyst was immediately identified. Reto Eco-Solutions (RETO) jumped 33.87% to $1.66, and WFF climbed 33.33% to $2.00 on volume exceeding 78 million shares. CDTG rose 27.19% to $2.76, while CBRG added 24.22% to $6.00.
Losers: On the downside, ZTG cratered 66.65% to $3.27. INVO Fertility (IVF) fell 32.30% to $1.53 despite reporting a Q2 earnings beat—a classic "sell the news" reaction. CBRZ dropped 26.44% to $6.40, and Bally’s (BALY) tumbled 24.93% to $10.35 after the casino operator reported worse-than-expected Q2 EPS results. MYSZ slid 22.05% to $3.04, and DFSC lost 19.81% to $2.17.
A flurry of earnings reports and corporate announcements drove significant single-stock action.
Amylyx Pharmaceuticals (AMLX) soared after the close on news that it will announce Phase 3 LUCIDITY trial topline results for avexitide in post-bariatric hypoglycemia on August 18. The stock was already up sharply in regular trading, reflecting anticipation of the data.
Duos Technologies Group (DUOT) jumped after reporting Q2 EPS of $1.37, crushing the $0.66 estimate, on sales of $6.175 million that beat the $4.9 million consensus. The stock traded higher on the beat.
Flexsteel Industries (FLXS) rose after the furniture maker reported Q4 adjusted EPS of $1.33, beating the $1.09 estimate, and revenue of $115.365 million, above the $109.663 million forecast. The company also guided Q1 sales of $111 million to $115 million, above the $107.861 million estimate.
Fabrinet (FN) saw mixed reaction. The company guided Q1 GAAP EPS of $3.39-$3.54, below the $3.78 estimate, but its adjusted EPS forecast of $4.10-$4.25 topped the $3.96 consensus. Revenue guidance of $1.375 billion to $1.425 billion also beat the $1.321 billion estimate.
DocGo (DCGO) fell after reporting Q2 EPS of $(0.16), missing the $(0.06) estimate, and sales of $73.425 million, below the $75.404 million forecast.
Bally’s (BALY) dropped after its Q2 EPS miss, while CVRx (CVRX) fell after Cantor Fitzgerald lowered its price target from $13 to $5.
Tesla (TSLA) was a notable bright spot, with shares rising on a report that the company is preparing an August launch of its Cybercab robotaxi in Austin, Texas. The vehicle, which lacks a steering wheel, represents a major milestone for the company’s autonomous driving ambitions.
SpaceX (SPCX) shares traded higher after multiple institutional investors—including Google, Nvidia, Harvard Management, Saudi Arabia’s Public Investment Fund, Peter Thiel’s Founders Fund, Fidelity, Gigafund, and BlackRock—disclosed multibillion-dollar stakes in 13F filings. However, the stock also faced a headwind from a fresh allegation regarding Grok’s role in creating child abuse material.
Nike (NKE) hit a 12-year low, pressured by sympathy with On Holding’s Q2 sales miss and a JPMorgan downgrade earlier this month.
M&A and Contracts
CACI International was selected as an awardee on the U.S. Space Force NITE-STAR IDIQ contract valued at up to $981 million over two five-year periods. JFB Construction announced that XTEND entered into a multi-year contract valued at up to ~$15 million with the Ministry of Defense of a European NATO member nation. Fulcrum Therapeutics struck an all-stock merger with Slate Medicines, sending shares higher. DoubleDown Interactive rose after a shareholder urged the special committee to reject an $11.25/ADS takeover offer, arguing the company is worth at least $26.40/ADS.
Insider buying activity was robust, signaling confidence among corporate executives. Notable transactions included:
- NVR: Insider bought $73,694 (Strong Buy score: 3)
- MTN: Two insiders bought $5.0 million (Strong Buy score: 3)
- KKR: Insider bought $4.7 million (Strong Buy score: 3)
- WY: Two insiders bought $615,400 (Strong Buy score: 3)
- TXT: Insider bought $988,594 (Strong Buy score: 3)
- UBER: Two insiders bought $1.6 million (Strong Buy score: 3)
- HBAN: 16 insiders bought $1.7 million (Strong Buy score: 3)
- BA: Two insiders bought $799,311 (Strong Buy score: 3)
- WHR: Insider bought $198,829 (Strong Buy score: 3)
- RSG: 35 insiders bought $388.8 million (Strong Buy score: 3)
The massive insider buying at RSG—nearly $389 million—stands out as a particularly strong vote of confidence in the waste management giant.
Bitcoin and Ethereum traded in a subdued fashion, with no major catalysts driving the crypto market. The broader risk-off tone in equities, driven by rising bond yields, kept digital assets under pressure.
- Amylyx Pharmaceuticals will release Phase 3 LUCIDITY trial results for avexitide before the open, a potential binary event for the stock.
- Economic data: Housing starts and building permits for July are due, offering a read on the housing market’s health amid elevated mortgage rates.
- Fed commentary: Any remarks from Fed officials will be scrutinized for clues on the rate path, especially after the 30-year yield’s surge to 5.31%.
- Earnings: A handful of retailers and consumer names report, providing further insight into consumer spending trends.
With the bond market flashing warning signals and the Fear & Greed Index stuck in fear territory, the path of least resistance for equities remains uncertain. The tug-of-war between resilient corporate earnings and rising rates will likely define the week ahead.
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