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U.S. stocks fell as Treasury yields continued their march higher despite the Treasury Department’s extraordinary debt buyback operation, raising concerns that higher borrowing costs will throw a wrench into the bull market.
The Dow Jones Industrials flopped 681.62 points, or 1.3%, to 52,781.43, weighed down by a 9% drop in Walmart shares.
The retail giant was pacing for its worst day in more than four years after its U.S. comparable sales missed analyst expectations, as did its adjusted earn
The S&P 500 slipped 66.17 points to 7,641.81.
The NASDAQ Composite dropped 263.93 points, or 1%, to 26,067.16.
A pullback in Walmart shares hit the broader market as well. The retail giant dropped 9% after its U.S. comparable sales missed analyst expectations, as did its adjusted earnings forecast for both the third quarter and full year.
Also weighing on equities, oil prices rose again amid increasing tensions between Iran and the U.S. President Donald Trump said in a Truth Social post late Wednesday that the U.S. would begin “most crushing economic operation ever taken against any country” against Iran. “This will be Economic Warfare and Isolation on an unprecedented scale,” he wrote.
Bond yields advanced on Thursday, climbing back from Wednesday’s slide following the Treasury Department saying it will at least double repurchases of 10-, 20- and 30-year debt in the next few months.
Treasury Secretary Scott Bessent told the media Thursday that the debt buyback operation could actually be larger than the $4 billion that was announced.
Prices for the 10-year Treasury popped, lowering yields to 4.70% from Wednesday’s 4.65%. Treasury prices and yields move in opposite directions.
Oil prices acquired $2.32 to $88.15 U.S. a barrel.
Gold prices recovered $36.70 to $4,582.00 U.S. an ounce.
