U.S. markets closed lower on Tuesday with the tech-heavy Nasdaq falling the most as bond yields spiked and fanned inflation concerns. Uncertainty surrounding the Middle East also weighed on risk appetite. On the economic front, the Federal Reserve released a report showed industrial production in the United States increased by 0.2% in July 2026, falling short of market expectations for a 0.3% rise, following an upwardly revised 0.3% increase in June. Besides, the Labor Department released a report showed US import prices fell by 0.4% month-over-month in July 2026, following a revised 0.3% decrease in June and contrasting with market forecasts of a 0.1% increase. This marked the largest monthly decline since May 2025. Meanwhile, a report released by the Commerce Department said housing starts in the US dropped by 12.4% from the previous month to a seasonally adjusted annualized rate of 1.239 units in July of 2026. The result was firmly below market expectations of a softer drop to 1.35 million units, not far from the six-year low of 1.182 million from two months prior.
Nasdaq slipped 355.2 points or 1.33 percent to 26,289.71, S&P 500 fell 53.3 points or 0.69 percent to 7,691.76 and Dow Jones Industrial Average was down by 116.38 points or 0.22 percent to 53,343.4.
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