U.S. stocks fell Thursday as Treasury yields climbed back from the prior session’s decline and a steep drop in Walmart stock weighed on the broader market. The Dow Jones Industrial Average dropped 350 points, or 0.6%, with the S&P 500 off 0.3% and the Nasdaq Composite retreating 0.4%.
Walmart stock fell 8% after the company’s U.S. comparable-store sales came in below what analysts had expected; its adjusted earnings outlook for the third quarter and the full year also disappointed, according to CNBC.
Bond yields turned higher Thursday, reversing Wednesday’s pullback that had followed the Treasury Department’s announcement that it would at least double repurchases of 10-, 20-, and 30-year debt over the coming months. The 10-year Treasury yield climbed more than 5 basis points to 4.704%, with the 30-year yield rising 6 basis points to reach 5.254%. The 30-year had spiked to its highest level in nearly 20 years earlier this week.
The intervention by Treasury Secretary Scott Bessent drew skepticism from analysts. Analysts at ING, as quoted by The Wall Street Journal, compared the maneuver to “rearranging deckchairs on the Titanic,” noting that without a concrete path to addressing the country’s $40 trillion debt, any lasting relief in borrowing costs remained far-fetched.
Michael Schumacher, former head of macro at Wells Fargo, shared that skepticism. “I’m still negative. I think long-term rates go up for a few reasons. In the U.S. case in particular, there’s just a huge budget deficit. Not much sign that’s going to improve. On top of that, you’ve got defense spending going up,” he told CNBC.
Oil prices added to the pressure on equities. West Texas Intermediate crude futures advanced 2% to approximately $88 per barrel, while Brent crude futures gained 3% to top $94 a barrel, following President Donald Trump’s Wednesday announcement that he would launch what he described as the “most crushing economic operation ever taken against any country” against Iran.
Crypto stocks defied the market’s downward pressure, according to The Wall Street Journal, with gains fueled by Bessent’s debt-repurchase announcement and the Trump administration’s backing of legislation favorable to the industry. Bitcoin rose roughly 4.7% to around $71,610.
