U.S. equities retreated on Thursday as a mix of corporate earnings, rising oil prices and climbing Treasury yields undermined investor sentiment.
The Dow Jones Industrial Average slipped 1.32% to 52,759.21, dipping below the 53,000 mark for the first time since early September. The tech-heavy Nasdaq 100 fell 0.72% to 29,213.16, while the broader S&P 500 declined 0.87% to 7,641.16.
Walmart led declines among blue chips after reporting second-quarter U.S. sales that missed expectations. The retail giant’s shares tumbled 9.2%, and management trimmed its outlook for the third quarter. The underperformance underscored concerns over U.S. consumer spending, a key driver of economic growth. In contrast, Deere & Co rallied 6.9% after posting quarterly results that topped estimates and forecasting a strong 2027 for the U.S. agricultural sector.
Treasury yields climbed again after a brief pullback, despite the U.S. Treasury’s announcement on Wednesday of expanded buybacks of long-dated bonds. The move temporarily eased pressure on yields but did not address broader debt sustainability, according to Serge Nussbaumer, head of capital markets at Maverix in Switzerland.
Oil prices remained a focal point amid geopolitical tensions, with U.S. President Donald Trump warning of a potential "economic war" against Iran following stalled negotiations. Brent crude futures held near recent highs, adding to inflationary pressures and weighing on risk assets.
Stocks of Moderna swung sharply after a 177% surge on Wednesday on positive trial results for a melanoma vaccine developed with Merck & Co. The shares reversed course on Thursday, plummeting nearly 24%, the largest single-day drop in their history. Advance Auto Parts also slumped about 24% after missing revenue estimates, while Coty fell 9.2% as it withheld full-year guidance and described the current fiscal year as a transition period.
