Stock slide hits Dow as Treasury plan fails to cool yields
U.S. stocks took a sharp slide Thursday as the Dow fell hundreds of points, Walmart plunged nearly 9%, and Treasury yields climbed again despite a stepped-up government bond buyback. Rising oil prices, inflation worries, and doubts that the Treasury plan can cool borrowing costs drove the selloff across major indexes.
According to CNBC, the Dow Jones Industrial Average shed 602 points, or 1.1%. The S&P 500 lost 0.7%, and the Nasdaq Composite dropped 1.1%, reversing much of Wednesday’s bounce after the Treasury Department unveiled a larger long-dated debt repurchase plan.
Key Takeaways
- The Dow fell 602 points as Walmart and rising yields weighed on equities.
- The 10-year Treasury yield climbed back near 4.70% despite the buyback plan.
- Walmart shares dropped nearly 9% after soft U.S. comparable sales and outlook.
- Oil rose as Iran tensions and inflation worries fed bond-market stress.
- Analysts warned the Treasury purchases may be too small to calm yields for long.
Why did markets slide after the Treasury plan?
On Wednesday, Treasury Secretary Scott Bessent’s department said it would at least double planned purchases of longer-term Treasurys from Sept. 9 through Nov. 4, lifting stocks briefly as yields eased from multiyear highs. Bessent later told CNBC the accelerated buyback could exceed the announced $4 billion per issue.
By Thursday, that relief faded. The 10-year yield rose more than 5 basis points to about 4.706%, near levels seen before the announcement, while the 30-year yield added more than 5 basis points to about 5.251%. Adam Phillips of EP Wealth Advisors told CNBC the program is “not the cure to what ails the bond market,” citing structural forces beyond a short-term buyback.
AP News also noted U.S. government debt topped $40 trillion on Wednesday, reinforcing investor focus on deficits and inflation.
How hard did Walmart hit the indexes?
Walmart was among the heaviest weights on the market, falling about 9% and pacing for its worst day since May 2022, CNBC reported. The retailer beat quarterly profit and revenue expectations, but U.S. comparable sales rose 2.6% versus a 3.5% FactSet consensus, and third-quarter and full-year adjusted earnings guidance trailed Wall Street estimates.
AP reported Advance Auto Parts tumbled 25.7% after weaker revenue, with its CEO citing tighter household budgets. Airlines and cruise lines also fell as higher fuel costs and spending worries overlapped. Deere rose 8.8% on a stronger quarter, while Exxon Mobil and ConocoPhillips gained with crude.
What is lifting oil and yields again?
Brent crude climbed about 2% to above $93 a barrel, and West Texas Intermediate rose about 2% to above $86, as U.S.–Iran tensions simmered. President Donald Trump vowed a sweeping economic campaign against Iran; Bessent said Washington would impose historically tough sanctions.
Stronger data also nudged yields higher: fewer workers filed for unemployment benefits than expected, and the Philadelphia Fed manufacturing index jumped to 47.4, its highest since April 2021. High yields matter because they raise borrowing costs for households, companies, and the government—and can undercut stock valuations.
Where do tech and AI swings fit this selloff?
Even on a down day for U.S. indexes, global tech stayed volatile. AP noted South Korea’s Kospi surged 5.9% as Samsung Electronics and SK Hynix jumped amid swings tied to the artificial-intelligence trade. Separately, CNBC said U.S.-listed Alibaba shares fell nearly 3% after profits dropped 75% on heavier AI spending.
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