US stocks drop as yields rise and Walmart plunges
US stocks fall on Thursday as S&P 500 drops 0.4% and the Dow and Nasdaq 100 decline around 0.7%, with Treasury yields rising and Walmart sinking 8% after weaker-than-expected second-quarter sales.
US stocks fell on Thursday, erasing gains from the last session, which were prompted by the Treasury's move to supress longer-term yields.
The S&P 500 fell 0.4%, while the Dow and the Nasdaq 100 fell around 0.7%.
Treasury yields rose across the curve to reflect concerns that the Treasury's efforts to prop up notes and bonds can worsen an already inflationary backdrop with ample dollar liquidity.
Borrowing costs were also lifted by higher fuel and gas prices after President Trump stated the US entered "economic war" against Iran, prolonging blockades of tankers crossing the Persian Gulf.
Banks held their losses as short-term Treasury securities fell further, with JPMorgan and Wells Fargo in the red.
On top of that, AI hyperscalers were mostly lower following the tepid financial results from OpenAI, which failed to grow at the same pace of rival Anthropic.
Walmart sank 8%, the sharpest single-session decline in four years, after its second-quarter sales fell short of expectations.