The stock market posted back-to-back losses on August 10 and 11, 2026, as technology stocks sold off and escalating Iran tensions pushed oil prices higher, adding to investor caution heading into a busy week of economic data. The S&P 500 fell 0.32% on Tuesday, marking its second straight session in negative territory, while the tech-heavy Nasdaq Composite fell 0.60%, according to CNBC.
The decline began Monday, when the Nasdaq index slipped 0.3% as the tech sector led losses across the market, according to the Wall Street Journal. Investors grew concerned about the sustainability of artificial intelligence spending and the ability of major tech companies to justify their elevated valuations through earnings growth.
Compounding the market weakness, oil prices surged about 5% on Monday as doubt grew that the U.S. and Iran would reach a deal to increase ship traffic through the Strait of Hormuz, according to CNBC. Brent crude futures rose above $89 a barrel as hopes for a diplomatic breakthrough faded following new demands from both Iran and President Trump, the Wall Street Journal reported. The energy price spike added to headwinds for equities, as higher oil prices raise inflation concerns and weigh on consumer spending.
The early good vibes from last week’s record highs are fading as summer doldrums settle in. U.S. trading volume dropped to one of the lowest levels of the year, with vacationing Wall Streeters and cautious traders holding off ahead of the July inflation report, according to the Journal. The relative stability in oil prices helped slow a rise in government bond yields later in the week, but the damage to equity sentiment had already set in, leaving the market vulnerable to further weakness as investors digest upcoming economic data and navigate geopolitical uncertainty.
Sources
- CNBC — S&P 500 and Nasdaq losses on August 11; oil prices surge on Iran deal doubts on August 10
- Wall Street Journal — Back-to-back losses; Nasdaq decline on August 10; Brent crude futures rise above $89; Iran deal hopes fade; summer trading volume low
- Reuters — Oil prices continue climb on US-Iran deal doubts; stocks retreat
