U.S. equities declined on Thursday as a sharp drop in Walmart shares amplified concerns over consumer spending, while rising oil prices and Treasury yields added pressure to major benchmarks.
Walmart’s stock tumbled 9% in early trading after the retail giant reported weaker-than-expected quarterly results and trimmed its full-year guidance. The pullback in Walmart shares, the world’s largest brick-and-mortar retailer, raised questions about the resilience of U.S. consumer demand, a critical driver of the American economy.
The Dow Jones Industrial Average fell 0.65% to 53,115 points, marking its lowest level since early April. The tech-heavy Nasdaq 100 declined 0.54% to 29,268, while the broad S&P 500 slipped 0.31% to 7,684 points.
Bond yields and oil prices contributed to the broad market downturn. U.S. crude futures remained elevated amid ongoing geopolitical risks tied to the conflict in the Middle East, particularly developments in Iran. President Donald Trump’s warning of a potential "economic war" with Iran, following stalled negotiations, added to market uncertainty.
Treasury yields also climbed, reflecting concerns over fiscal policy as U.S. federal debt surpassed $40 trillion for the first time. The surge in borrowing costs and energy prices weighed on investor sentiment, compounding pressure on equities already grappling with mixed corporate earnings and macroeconomic headwinds.
