August 21 Stock Market Report: NYSE Falls on Rate Burden; Semiconductors Weak, Tesla and Eli Lilly Rise

NY Market Falls on Rate Burden; Semiconductors Weak, Tesla and Eli Lilly Close Higher

The U.S. stock market displayed mixed trading on August 20, 2026. Despite the U.S. Treasury’s announcement of an expansion of long-term Treasury bond buybacks, interest rates rose again, and Walmart’s poor performance weighed on sentiment, leading indices to close lower. According to Yonhap News and Bloomberg, the rebound in Treasury yields was the key factor pressuring the entire market.

Major Stock Movements: Semiconductors and Hardware Notably Weak

Movements among large-cap stocks were clearly divided. While semiconductor-related stocks uniformly showed weakness, select stocks in the automotive, pharmaceutical, and platform sectors recorded gains.

Ticker	Price	Change	Market Cap	PER	EPS Growth
Broadcom	362.48	-0.05%	1.72T	60.2	-
Intel	92.80	-0.04%	0.49T	-	9865.5%
AMD	466.42	-0.04%	0.76T	123.4	16435.6%
ASML	1,751.73	-0.03%	0.67T	59.5	-
Micron	937.11	-0.00%	1.06T	21.2	-
Tesla	351.12	+0.04%	1.39T	322.1	-4709.0%
Eli Lilly	1,280.34	+0.04%	1.14T	42.9	-
Apple	316.83	+0.02%	4.62T	36.4	2258.6%
Amazon	265.84	+0.02%	2.87T	21.4	2879.9%
NVIDIA	217.56	-0.01%	5.27T	33.3	6599.3%

Broadcom, which fell the most, finished trading at 362.48, down about 4.6% from the previous day's 380. Intel and AMD also recorded declines of around 4% from their previous closes of 96.7 and 484.4, respectively. Semiconductor equipment maker ASML also dropped from 1,802.98 to 1,751.73. Rising interest rates act as a factor that erodes the future cash flow value of growth stocks, and it was confirmed on this day that semiconductor and equipment stocks with high valuations—such as Broadcom (PER 60.2), AMD (PER 123.4), and ASML (PER 59.5)—are particularly sensitive to this pressure.

Conversely, Eli Lilly surged more than 4.4% from 1,225.73 to 1,280.34, and Tesla also rose 4.2% to 351.12 compared to the previous day's 336.87. Apple and Amazon saw modest gains of +0.02% and +0.02%, respectively, but the fact that large-caps with market caps of 4.62 trillion and 2.87 trillion showed a defensive flow suggests that the preference for large-cap quality stocks remains even amid interest rate burdens.

Divergence Between Earnings Growth and Valuation

A notable point in the data is the combination of EPS growth rate and PER. Palantir recorded explosive EPS growth of 22,857.1% and AMD 16,435.6%, yet their PERs of 147.2 and 123.4 significantly exceed the market average. In contrast, Intel is showing a rebound of 9,865.5% from a profit base so weak that a PER cannot be calculated, suggesting an interpretation that it is in the early stages of recovery.

There are also segments that appear relatively undervalued. Alphabet recorded a PER of 17.3 with an EPS growth rate of 3,419.4%, and Micron also maintains a PER of 21.2, placing it on the lower end within the semiconductor sector. Financial and value stocks like Berkshire Hathaway (12.6) and JPMorgan (15.3) are maintaining PERs below 20. On the other hand, Tesla is categorized as the stock with the heaviest burden relative to earnings, with a PER of 322.1 and an EPS growth rate of -4,709.0%.

Market Impact and Investment Implications

Indicators showing the overall direction of the New York market were minimal. VOO and SPY, tracking the S&P 500, remained flat (+0.00%), and QQQ, the representative Nasdaq 100 ETF, slipped slightly (-0.00%). While indices were supported, the wide range of individual stock gains and losses indicates that the market was characterized by clear stock differentiation rather than index movement.

Summarizing foreign media reports, there are two future variables. First is the direction of U.S. Treasury yields. If the perception spreads that the Treasury’s buyback expansion does not fundamentally resolve the supply burden, adjustments in high-valuation tech stocks could repeat. Next is oil prices. Tamas Varga, an analyst at PVM Oil Associates, diagnosed that geopolitical risks are driving oil prices higher, and rising energy costs could lead to a reignition of inflation and a retreat in expectations for rate cuts.

From an investor's perspective, it is necessary to keep in mind the widening gap between sectors. In a phase where volatility is increasing for interest rate-sensitive semiconductor and equipment stocks, the appeal of stocks like Alphabet and Micron, which record low PERs relative to earnings growth, is expected to be relatively highlighted. Adjusting the proportion of stocks with sector-specific momentum, such as Eli Lilly and Tesla, alongside index-tracking products, is projected to be key to short-term strategy.