TLDR
- The US Treasury announced it will at least double purchases of longer-dated government debt starting in September, pushing yields lower
- Bitcoin surged over 9% to hit $70,000 for the first time since early June
- The S&P 500, Dow, and Nasdaq each gained 0.2% on Wednesday, snapping a three-day losing streak
- Federal Reserve minutes from the July meeting showed three officials dissented in favor of a rate hike, signaling a hawkish tone
- US national debt crossed $40 trillion as Trump threatened economic warfare against Iran
Bitcoin hit $70,000 for the first time since early June after the US Treasury made a surprise move to buy more long-dated government bonds. Stocks steadied, and Treasury yields pulled back.
The Treasury said it would at least double its purchases of longer-dated government debt starting in September. That announcement helped calm a bond market selloff that had been rattling equities for days.
The 10-year Treasury yield fell around 5 basis points to 4.65%. The 30-year yield dropped 9 basis points to 5.19%. Lower yields tend to ease pressure on risk assets like stocks and crypto.
Bitcoin reacted sharply. The cryptocurrency jumped more than 9% and crossed the $70,000 mark, a level it had not reached since early June.
Stock futures were steady early Thursday. S&P 500 futures traded slightly higher, while Dow futures hovered near flat. Nasdaq-100 futures rose around 0.2%.
Fed Minutes Signal Hawkish Tone
The Federal Reserve released minutes from its July 28-29 meeting on Wednesday. The minutes showed that three officials voted in favor of a quarter-point rate hike. That was a hawkish signal for markets.
Several policymakers said more tightening could be needed if inflation stays above the Fed’s 2% target. The Fed held its benchmark rate steady at a range of 3.50% to 3.75% at that meeting.
Fed Chair Kevin Warsh had been looking to let markets do some of the tightening work. Treasury Secretary Scott Bessent’s bond-buying move could complicate that plan.
Markets largely brushed off the hawkish minutes. The Treasury’s bond intervention had a bigger effect on sentiment.
Oil, Iran, and the Debt Milestone
Oil prices also drew attention. Global crude climbed back toward $92 a barrel as hopes for a quick end to the US-Iran conflict faded. Higher energy costs could keep inflation elevated.
President Trump posted on Truth Social that the US plans to launch what he called “Economic D-Day” against Iran, citing plans for economic warfare and isolation on an unprecedented scale.
BREAKING: Trump announces "the most crushing economic operation ever taken against a country" against Iran.
Trump implies the US will directly target China and Russia, saying "any country that allows its financial institutions, businesses, airports, or government entities to… pic.twitter.com/Hu3fzEyC0x
— The Hormuz Letter (@HormuzLetter) August 19, 2026
The US national debt crossed $40 trillion, having more than doubled in under a decade. That milestone added to broader concerns about America’s fiscal health.
In individual stocks, Moderna surged nearly 177% after positive trial results for a personalized mRNA cancer therapy developed with Merck. The move lifted the broader healthcare sector, which gained 3.5%.
Walmart is due to report earnings Thursday. Analysts expect strong results but slower sales growth.
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