Key facts
- Major U.S. stock indexes declined on Thursday.
- Rising Treasury yields and Walmart's disappointing results pressured the market.
- Walmart shares dropped 9.4% after missing comparable sales expectations.
- High gas prices led shoppers to curb spending.
- Brent crude oil prices rose 1.9% to $93.35 per barrel.
- The 10-year Treasury yield climbed back to 4.70%.
- U.S. national debt surpassed $40 trillion.
U.S. stock indexes fell on Thursday, with futures subdued as bond yields resumed their climb and Walmart's stock dropped significantly after missing sales expectations. Rising oil prices, driven by geopolitical uncertainty in the Persian Gulf, fueled inflation concerns and pushed Treasury yields higher.
The S&P 500 slipped 0.3%, the Dow Jones Industrial Average fell 344 points (0.6%), and the Nasdaq composite was 0.8% lower. The bond market remains a focal point, with the 10-year Treasury yield climbing back to 4.70% after a brief dip following the Treasury Department's announcement to double purchases of longer-term Treasurys. Analysts cautioned that this move might be short-lived given the small scale relative to the overall Treasury market and persistent investor concerns.
Further contributing to market pressure, the U.S. national debt surpassed $40 trillion. Brent crude oil prices rose 1.9% to $93.35 per barrel amid ongoing concerns about oil tanker traffic in the Persian Gulf. Encouraging economic data, including lower-than-expected unemployment benefit applications and stronger regional manufacturing reports, also supported higher longer-term Treasury yields.
Walmart was a significant drag on the S&P 500, falling 9.4% despite reporting stronger profit and revenue than analysts expected. Investors focused on a slowdown in underlying revenue growth at its stores and a weaker-than-expected profit forecast for the current quarter. The retailer's performance offers insight into consumer spending, which has shown signs of pressure from high inflation and a potentially softening job market.
Advance Auto Parts also tumbled 23.1% after reporting weaker revenue, with its CEO citing tighter household budgets. This consumer pullback could exacerbate economic slowdowns and impact travel companies, with Norwegian Cruise Line Holdings, United Airlines, and American Airlines experiencing declines.
On the upside, Deere rose 8.7% after exceeding profit and revenue expectations, signaling a positive outlook for the agriculture equipment business. Oil companies also benefited from rising crude prices, with Exxon Mobil and ConocoPhillips seeing gains. In international markets, South Korea's Kospi soared 5.9%, driven by jumps in Samsung Electronics and SK Hynix, amidst volatility related to AI boom stocks.