- The Dow Jones Industrial Average fell 703.84 points, or 1.32%, closing at 52,759.21, while the S&P 500 dropped 0.87% and the Nasdaq Composite fell 1%.
- Treasury yields resumed their climb on Thursday, with the 10-year yield gaining more than 5 basis points to 4.704%.
- Treasury Secretary Scott Bessent indicated that the buyback could exceed the announced $4 billion, but investor skepticism remains high.
- The Treasury Department announced on Wednesday that it would at least double repurchases of 10-, 20-, and 30-year debt, which initially sent yields sharply lower.
- Yields on longer-dated Treasurys pulled back from multi-year highs after the announcement, allowing U.S. stocks to snap a three-session losing streak.
- Oil prices rose nearly 3% amid escalating U.S.-Iran tensions, adding further pressure to the market.
- A pullback in Walmart shares negatively impacted the broader market, as the retail giant posted its worst day in over four years.
U.S. stocks fell sharply on Thursday703.84 points, or 1.32%, closing at 52,759.21. The decline was driven by rising Treasury yields, particularly the 10-year yield, which climbed to 4.704%, raising concerns about the impact of higher borrowing costs on the economy.12
Despite the Treasury Department's announcement to double its buybacks of longer-dated government debt, market analysts remain skeptical. Adam Phillips4
The broader market was also affected by a significant drop in Walmart shares, which posted its worst day in over four years after missing sales expectations. Additionally, oil prices rose amid escalating tensions between the U.S. and Iran, with President Trump declaring an intention to impose the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY!" This geopolitical uncertainty further weighed on investor sentiment.6
As the market grapples with these challenges, the outlook remains uncertain, with analysts urging caution in the face of rising yields and geopolitical tensions.
“Treasury Secretary Scott Bessent said the buyback could exceed the announced $4 billion, but EP Wealth Advisors' Adam Phillips called it 'not the cure' to bond market woes. Oil jumped nearly 3% to $86.83 on U.S.-Iran tensions, while Walmart posted its worst day in four years.”
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