Two damsels shouldn't cause that type of spike, What I'd be concerned about is some major die off in the tank (snail, sponge, tunicate, worms, etc.). It wouldn't hurt to do a substantial water change at this time. You could also retest with another kit (sometimes kits are inaccurate, especially if they're old).
I also notice a lot of food in the feeding cone. To be fair, I'm not sure how often you feed or if this photo was taken just after you added food. But that might be the cause of your nutrient spike as well. You may want to cut back a little.
Your tank is looking great, btw.
On a side note, that yellow tang will someday outgrow the tank. It looks like a tiny, cute guy right now but in a year or so, it's going to need more swimming area.