The Dow Jones Industrial Average shed 350 points on Thursday as Treasury yields rebounded and Walmart shares slid on a weak sales outlook. Oil prices also climbed after President Trump threatened "economic warfare" against Iran, adding further pressure on stocks that had snapped a three-session losing streak the day before.
The Dow Jones Industrial Average shed 350 points, or 0.6%, on Thursday. The S&P 500 lost 0.3%, while the Nasdaq Composite slid 0.4%.
Yields snap back after buyback relief
Treasury yields advanced Thursday, climbing back from Wednesday's slide that followed the Treasury Department's debt buyback announcement. On August 19, the Treasury said it would at least double its liquidity-support buyback operations for longer-dated debt, raising the cap on each operation from $2 billion to at least $4 billion, effective from September 9 through November 4, 2026.
The 10-year Treasury yield gained more than four basis points to 4.696%, while the 30-year yield added more than four basis points to 5.236%. Against total U.S. public debt that has surpassed $40 trillion, the expanded buyback amounts to roughly 0.01% of outstanding debt.
Walmart drags on the broader market
A pullback in Walmart shares also weighed on equities. The retail giant dropped 8% after its U.S. comparable sales missed analyst expectations, as did its adjusted earnings forecast for both the third quarter and the full year.
Oil rises as Trump escalates Iran rhetoric
Oil prices added further pressure on stocks. West Texas Intermediate crude rose 2% to trade around $88 a barrel, while Brent crude moved up 3% to above $94 a barrel, after President Trump vowed a sweeping economic campaign against Iran in a Truth Social post. Trump wrote: "This will be Economic Warfare and Isolation on an unprecedented scale."
A brief reprieve fades
Thursday's declines reversed a rally from the prior session, when the S&P 500 snapped a three-session losing streak as longer-dated Treasury yields pulled back from multi-year highs. On August 19, the S&P 500 closed up 0.21% at 7,707.98, while the Dow added 119.65 points. By the following morning, yields had resumed climbing, putting renewed pressure on equities.
Sources: CNBC, Crypto Briefing
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