U.S. equities slipped on Thursday, with Walmart’s disappointing quarter and climbing oil prices weighing on sentiment, while Moderna’s shares surged before reversing most of the gains.
The Dow Jones Industrial Average fell 0.7% to 53,110 points in early trade, putting it on track for its lowest close since early August. The S&P 500 declined 0.3% to 7,683, and the Nasdaq 100 dropped 0.7% to 29,290. Futures indicated a mixed open later, with Dow futures down 0.13% and Nasdaq futures up 0.1%.
Walmart led losses among major retailers after reporting second-quarter U.S. sales that missed expectations, with pharmacy price pressure cited as a key drag. The stock fell 6% in pre-market trading, pressuring peers including Costco, TJX and Home Depot. In contrast, agricultural equipment maker Deere & Co rose nearly 4% after posting better-than-expected results and forecasting a strong 2027 for U.S. farming. Cosmetics group Coty slumped 16% after withholding full-year guidance and calling the current fiscal year a transition period.
Moderna’s shares surged 177% to an intraday high of $176.66 on Wednesday, marking the highest level in more than three years. The move pushed the stock above its 50-, 100- and 200-day moving averages and sent the Relative Strength Index to a record 92.21, signaling extreme overbought conditions. By Thursday, the shares had pared gains to trade roughly 140% above Tuesday’s close, with a 17% pullback recorded.
The broader equity backdrop remains challenged by rising bond yields and oil prices. Brent crude climbed 2.6% to $94.04 per barrel, the highest since late July, while U.S. WTI rose 2.5% to $87.95. UBS analyst Giovanni Staunovo cited elevated Middle East tensions as a risk to regional oil exports, potentially tightening global supply further.
In European markets, the Swiss Market Index (SMI) declined 0.45%, with Logitech and Swiss Re among the largest decliners, each down nearly 3%. The losses followed a mixed session on Wednesday, when U.S. Treasury plans to increase buybacks of long-dated bonds briefly eased concerns over rising yields, though the structural pressures on U.S. debt remained intact. Total U.S. federal debt surpassed $40 trillion for the first time this week.
Among SMI components, Geberit advanced 1.1% after strong half-year results, while Givaudan, Amrize and Holcim also edged higher. Health care names such as Roche, Novartis and Lonza gained modestly, with Lonza following Wednesday’s gains tied to Moderna-related news. On the downside, Swiss Prime Site rose 1.1%, while Zug Estates was flat.
Traders noted a brief easing in market volatility after the Treasury’s announcement, but warned that structural issues—including rising oil prices and inflation expectations—continue to pose risks to risk assets.
