Key facts
- U.S. stock indexes opened lower on Thursday as government bond yields resumed their upward trend.
- Walmart's quarterly earnings report missed sales expectations.
- The 30-year Treasury yield rose by 2.3 basis points to 5.217%, and the benchmark 10-year yield also edged higher.
- Oil prices increased by 2.4%, fueling inflation fears.
- Minutes from the Federal Reserve's July meeting indicated concerns about inflation and potential rate hikes.
U.S. stock indexes opened lower on Thursday as government bond yields resumed their upward trend, hurting investor sentiment. Retail bellwether Walmart's quarterly earnings report missed sales expectations, further dampening market mood. The Dow Jones Industrial Average fell 81.8 points, or 0.15%, at the open to 53381.22. The S&P 500 dropped 17.5 points, or 0.23%, to 7690.49, while the Nasdaq Composite declined 119.6 points, or 0.45%, to 26211.52 at the opening bell.
Yields on the 30-year Treasury bond rose by 2.3 basis points to 5.217%, and the benchmark 10-year yield also edged higher. This rebound follows a sharp retreat in yields during the previous session, partly attributed to U.S. Treasury support measures for long-duration bonds. Market sentiment was also influenced by concerns over rising government debt and elevated oil prices, stemming from Middle East supply disruptions. The 30-year Treasury yield had previously reached a near two-decade high, and total U.S. debt has now surpassed $40 trillion for the first time. Oil prices saw a 2.4% increase.
Minutes from the Federal Reserve's July meeting, released earlier, revealed policymakers' concerns about persistent inflation and the potential need for further interest rate hikes if inflation does not return to the 2% target. Investors are also anticipating weekly jobless claims data and comments from St. Louis Fed President Alberto Musalem.
In early stock movements, Coty fell 7.6% after issuing earnings guidance below expectations. Shares of cryptocurrency-related companies rallied, with Strategy adding 10.5% and Coinbase Global rising 7.5%. Moderna experienced a significant dip of 11.4% after a substantial surge the prior day.