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The US stock market moved lower on Thursday as Treasury yields resumed climbing. Walmart’s sales report pressured major indexes, while higher oil prices renewed inflation concerns across the broader financial market.
The Dow Jones Industrial Average fell 0.8% during morning trading. The S&P 500 lost 0.4%, and the Nasdaq Composite declined 0.7%. Meanwhile, Bitcoin climbed above $71,000 as cryptocurrency-linked shares moved against the wider market.
The 10-year Treasury yield rose to about 4.69% after ending Wednesday near 4.65%. The 30-year yield reached 5.24%, near its highest level since 2007.
Treasury Secretary Scott Bessent announced larger long-term debt purchases on Wednesday. The Treasury plans to at least double repurchases of 10-year, 20-year and 30-year securities between September 9 and November 4.
The decision briefly lowered yields and helped the S&P 500 end a three-session losing streak. This relief faded on Thursday as investors returned their attention to government borrowing and inflation.
US government debt passed $40 trillion on Wednesday, only months after crossing $39 trillion. Joe Saluzzi, co-manager of trading at Themis Trading, questioned the effect of the Treasury plan. He said, “That’s not really going to change or move the needle much.”
Economic reports added pressure to the stock market today. Weekly unemployment claims fell more than economists expected, showing that layoffs stayed limited.
The Philadelphia Federal Reserve’s manufacturing index rose to 47.4 in August from 41.4 in July. Economists had expected a reading of 25. The index reached its highest level since April 2021.
The regional employment index also climbed to 27.9, its highest reading since April 2022.
Minutes from the Federal Reserve’s July meeting showed stronger inflation concerns among policymakers. Several officials indicated that they would support an interest-rate increase if price pressures continued.
Walmart shares dropped nearly 9% after its US comparable sales increased 2.6%. Analysts had expected growth of 3.5%.
The retailer also issued adjusted earnings guidance below Wall Street forecasts for the fiscal third quarter and full year. Walmart’s decline pulled the S&P 500 consumer staples sector down about 1.6%.
Consumer discretionary shares lost around 1.3% as Amazon and Tesla moved lower. Advance Auto Parts fell 22.2% after its quarterly revenue missed estimates. The company linked the shortfall to tighter household budgets.
Travel shares declined as fuel prices created added costs. Norwegian Cruise Line fell 4.2%, United Airlines lost 2.6%, and American Airlines dropped 2.5%.
Alibaba’s US-listed shares fell nearly 3% after the company reported a 75% decline in quarterly profit. Higher spending on artificial intelligence contributed to the drop.
Brent crude rose 2.5% to about $93.90 a barrel, marking its fifth consecutive advance. West Texas Intermediate traded above $87 as tensions between the United States and Iran kept supply concerns active.
President Donald Trump threatened a wider economic campaign against Iran but offered few details. Uncertainty surrounding Persian Gulf shipping continued to support crude prices.
Higher oil prices lifted energy companies even as the stock market today declined. Exxon Mobil gained 1.8%, while ConocoPhillips rose 3%. Deere also gained 3.8% after raising the lower end of its annual profit forecast.
Bitcoin rose above $71,000 and reached its highest price since June 1. The cryptocurrency gained nearly 11% over two sessions following Wednesday’s White House meeting on digital assets.
Trump joined regulators and cryptocurrency executives in calling for Congress to pass the Clarity Act. The proposed legislation would establish a federal market structure for digital assets.
Ether also reached its highest level since May 12, while Solana traded at its strongest level since May 16. The gains supported cryptocurrency-linked companies during Thursday’s stock market session.
Strategy advanced 6.6%, and Coinbase rose 5.6% in Thursday morning trading. Earlier premarket activity also lifted Mara Holdings, Circle Internet and American Bitcoin as digital assets extended their gains.
Investor attention now turns to whether Treasury yields keep rising as markets assess new economic data and Federal Reserve comments. Oil supply developments, Walmart’s consumer outlook and progress on the Clarity Act could also guide stocks and cryptocurrencies.
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