U.S. equities retreated on Thursday as rising Treasury yields, elevated oil prices and disappointing earnings from Walmart weighed on sentiment, pushing the Dow Jones Industrial Average below 53,000 for the first time since early September.
The blue-chip Dow closed down 1.32% at 52,759.21, just above its session low, while the tech-heavy Nasdaq 100 fell 0.72% to 29,213.16. The broader S&P 500 declined 0.87% to 7,641.16, reflecting broad-based pressure across sectors.
The selloff followed a surge in long-dated Treasury yields after the U.S. Treasury announced plans to accelerate buybacks of longer-term debt. While the move temporarily eased pressure on yields, they climbed again on Thursday. Bond buybacks may improve market mechanics but do not address debt sustainability, according to Serge Nussbaumer, head of capital markets research at Maverix in Switzerland.
Oil prices remained elevated as geopolitical risks in the Middle East intensified. U.S. President Donald Trump warned of a potential "economic war" against Iran amid stalled nuclear negotiations, raising concerns over supply disruptions.
Walmart’s U.S. same-store sales missed expectations in the second quarter, sending its shares down 9.2%. The retailer also trimmed its outlook for the third quarter, stoking concerns about consumer spending, a key pillar of the U.S. economy. In contrast, Deere & Co rallied 6.9% after posting strong quarterly results and forecasting a favorable outlook for the U.S. agricultural sector in 2027.
Biotech stocks saw sharp swings: Moderna surged 177% on Wednesday following positive results from a melanoma vaccine trial with Merck & Co, but erased nearly a quarter of those gains on Thursday with a 24% drop, the largest single-day decline in its history. Advance Auto Parts fell roughly 25% after missing analyst revenue estimates. Coty slid 9.2% after reporting quarterly results and declining to provide annual guidance, describing the current fiscal year as a transition period.
The U.S. national debt surpassed $40 trillion for the first time, underscoring fiscal pressures that continue to influence market dynamics despite temporary measures to stabilize bond markets.
