U.S. equities retreated on Thursday as Walmart’s disappointing domestic sales dragged on retail shares, while rising oil prices and Treasury yields added to the pressure. The Dow Jones Industrial Average fell 0.68% to 53,097, its lowest level since early August, while the Nasdaq 100 dropped 0.41% to 29,305 and the S&P 500 declined 0.29% to 7,687.6.
Walmart’s stock slumped more than 9% after its second-quarter U.S. sales missed expectations, with pharmaceutical price pressure cited as a key drag. The decline weighed on broader retail peers, with Costco, Kroger and Home Depot each falling between 1.3% and 2.9%. The drop in consumer-facing stocks underscored concerns about U.S. household spending, a critical pillar of the economy.
Treasury yields climbed as the U.S. national debt surpassed $40 trillion for the first time, a milestone analysts described as a ‘notable event.’ The Treasury’s announcement that it would increase purchases of long-dated bonds had only a temporary easing effect on yields, according to economists at Dekabank. ‘Fundamentally, the buybacks change nothing,’ the bank noted.
Oil prices extended gains amid escalating tensions in the Middle East, with U.S. President Donald Trump warning of a potential ‘economic war’ against Iran following stalled nuclear negotiations. Brent crude futures remained elevated, adding to inflationary pressures that could further strain consumer budgets.
In contrast, industrial bellwether Deere & Co. surged nearly 4.4% after posting better-than-expected quarterly results and forecasting a strong 2027 for the U.S. agricultural sector. Conversely, Coty shares plunged more than 10% after the cosmetics maker withheld annual guidance and described the current fiscal year as a ‘transition period,’ following Estee Lauder’s strong earnings-driven rally the prior day.
