Key Highlights

  • The Dow Jones Industrial Average shed 460 points, or 0.9%, the S&P 500 lost 0.4%, and the Nasdaq Composite dropped 0.9% as Treasury yields reversed course from the prior session's decline.
  • The 30-year Treasury Yield added more than 5 basis points to 5.251%, while the 10-year yield gained more than 5 basis points to 4.706%, after earlier touching its highest level in nearly 20 years this week.
  • Oil prices rose again amid escalating tensions between Iran and the US, with WTI crude up 2% above USD 88 a barrel and Brent Crude up 2% above USD 93 a barrel.
  • Walmart shares dropped 9% after US comparable sales missed analyst expectations and the company lowered its adjusted Earnings forecast for both the third quarter and full year.

Yields Reverse Course, Pressuring Equities

US stocks fell Thursday as Treasury yields reversed course from the decline seen in the prior Trading session following the Treasury Department's Debt buyback announcement. The Dow Jones Industrial Average shed 460 points, or 0.9%. The S&P 500 lost 0.4%, while the Nasdaq Composite dropped 0.9%.

Bond yields advanced Thursday, climbing back from Wednesday's slide after the Treasury Department said it would at least double repurchases of 10-, 20-, and 30-year debt over the next few months. Treasury Secretary Scott Bessent said Thursday that the buyback operation could ultimately be larger than the USD 4 billion figure announced. The 30-year Treasury yield added more than 5 basis points to 5.251%, while the 10-year Treasury yield gained more than 5 basis points to 4.706%. The 30-year yield had spiked to its highest level in nearly 20 years earlier in the week.

Market Watchers Skeptical Buyback Program Offers Lasting Relief

Some Market Participants remain skeptical that the buyback program will provide meaningful relief to the bond market, pointing to structural forces at play that are largely beyond the Treasury and the administration's control. Relief following past interventions has generally proven short-lived, with observers suggesting a larger, more sustained effort would be needed for any impact to have staying power.

Rising Oil Prices Add to Pressure Amid Iran Tensions

Oil prices also weighed on equities, rising again amid escalating tensions between Iran and the US. President Trump said in a Truth Social post Wednesday that the US would begin the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY," describing the move as "Economic Warfare and Isolation on an unprecedented scale." Bessent said in a Thursday interview that the US would impose the "toughest sanctions in history" against Iran. West Texas Intermediate crude futures rose 2% to trade above USD 88 a barrel, while global benchmark Brent crude futures rose 2% to above USD 93 a barrel.

Walmart Weighs on Broader Market

A pullback in Walmart (NYSE:WMT) shares also hit the broader market. The retail giant dropped 9% after its US comparable sales missed analyst expectations, as did its adjusted earnings forecast for both the third quarter and full year. The decline came after Wall Street's winning session a day earlier, when the S&P 500 snapped a three-session losing streak as yields on longer-dated Treasurys pulled back from multi-year highs following the government's plan to ease pressure from a recent Bond Market rout.

Conclusion

Thursday's pullback shows how quickly the relief from the Treasury's buyback announcement faded, with yields resuming their climb and equities giving back the prior session's gains. With oil prices staying elevated on Iran-related tensions and Walmart's guidance cut raising questions about consumer spending heading into the back half of the year, markets appear to be weighing multiple simultaneous pressures rather than reacting to any single catalyst. Whether the Treasury's buyback program, even if expanded further, can durably anchor long-dated yields will likely be a key focus for markets in the sessions ahead.