Markets face rising rates and geopolitical uncertainty as resilient consumers and small cap strength support the broader outlook. Plus, surging copper demand, AI infrastructure and defense technology are creating new investment opportunities. Later, retail earnings, Fed policy and higher energy prices put consumer spending and the market rally to the test.<br><br>Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Copper demand, defense AI and consumer strength shape the market outlook 8/18/26

Morning Call

Bond sell-off continues. I'm Morgan Brennan, and this is your Morning Call. Good Tuesday morning. Let's get a check on U.S. stock futures, which are turning negative here, decidedly so when it comes to the Nasdaq here, pre-market. Nasdaq is poised to open down more

than 1 percent right now, down 285 points, Dow down 35 points, so basically around the flatline, S&P down 36 points. This after a down day for the major averages yesterday as well as Friday. And the S&P, as I mentioned, and Nasdaq coming off of two straight negative sessions. What's causing this? Let's take a look at the bond market right now and what we're seeing in treasuries as notes

continue to sell off here and as yields continue to move higher across the curve. So U.S. 10-year treasury yielding 4.73 percent now. We've seen a big move up just since Friday. The 30-year treasury yielding 5.32 percent now. That continues its move higher. We're trading at fresh 19-year highs there. For the 10-year treasury, the yields right now are at the highest levels we've seen since January of

2025. And if we get a check on the Fed-sensitive two-year treasury, 4.19 percent. We'll get a quick check on the dollar index as well here. The dollar is higher and, well, it's unchanged right now, actually. 99.63 is the level there. And finally, let's get a check on energy prices as crude continues its climb, which in turn is contributing to what we're seeing in treasuries. WTI is up about half a

percent, trading just below $85 a barrel. Brent, basically flat here, trading just below $91 a barrel. Energy prices, as I mentioned, moving higher as we saw another ship struck, attacked, that was traveling through the Strait of Hormuz by Iran.

Copper demand, defense AI and consumer strength shape the market outlook 8/18/26

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Copper demand, defense AI and consumer strength shape the market outlook 8/18/26

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.