Key facts
- Global stocks fell for four consecutive sessions, the longest losing streak since March.
- U.S. government bond yields rose, with the 30-year yield reaching 5.244% and the 10-year at 4.69%.
- The U.S. Treasury Department announced support measures for long-duration bonds.
- Total U.S. debt has surpassed $40-trillion for the first time.
- Walmart reported a sales miss, impacting investor sentiment.
- Oil prices increased for the fifth consecutive session due to Middle East supply concerns.
Global stock markets extended their losing streak, with an MSCI index of world stocks falling for four consecutive sessions, as investors questioned the efficacy of U.S. Treasury support measures for long-duration bonds. The sell-off in government bonds pushed yields higher again, with the 30-year Treasury yield adding 5 basis points to 5.244% and the benchmark 10-year yield inching up to 4.69%. Concerns over elevated oil prices stemming from the Iran conflict and increasing government debt have battered markets this week.
Canada's commodity-heavy stock index also opened lower, as losses in mining stocks offset energy gains. Investors are weighing whether U.S. Treasury support will be enough to calm global bond-market concerns. The S&P/TSX Composite Index was down 0.3% at 9:30 a.m. ET. U.S. President Donald Trump had threatened new tariffs on Canadian imports but pushed back the date to Saturday, citing progress in talks, and indicated a deal was likely.
The main U.S. indexes opened lower, with the Dow Jones Industrial Average falling 0.15%, the S&P 500 down 0.23%, and the Nasdaq Composite dropping 0.45%. Walmart lost 8.1% in early trading after missing Wall Street expectations for quarterly comparable sales, as consumers pulled back on spending amid rising gas prices. Megacap and growth stocks were mostly lower, while Nvidia saw a marginal increase. Oil prices rose 3%, extending gains for the fifth consecutive session on stalled U.S.-Iran peace talks and Middle East supply disruptions.
Recent macroeconomic developments have impacted the S&P 500 and the Dow, which had previously reached record highs following a strong earnings season. Minutes from the U.S. Federal Reserve's July meeting revealed deepening inflation concerns, with several policymakers indicating readiness to raise interest rates if inflation does not return to the central bank's 2% target. St. Louis Fed President Alberto Musalem is expected to make remarks later in the day. In early movers, Deere gained 1.3% after raising its full-year net income forecast.