Stock Market Today, Aug. 20: Stocks Slide on Weak Retail Earnings, Rising Bond Yields

On August 20, the stock market experienced a downturn, with the Dow Jones Industrial Average falling 1.32% to 52,759, the S&P 500 declining 0.85% to 7,642, and the Nasdaq Composite dropping 1.00% to 26,067. This market slide was primarily driven by weak retail earnings and rising bond yields. Walmart (WMT) played a significant role as its stock slid 9%, leading the market lower after reporting earnings that missed analysts' expectations.

Despite beating earnings, Walmart reported a same-store sales decline of 2.6% and weaker 2026 guidance, which contributed to the market's pessimistic outlook. TJX Companies (TJX) also underperformed, falling 3% despite beating sales and earnings expectations for the quarter. The company's guidance and management's comments about rising gas prices affecting consumer spending further dampened investor sentiment.

Meanwhile, Robinhood Markets (HOOD) reversed its earlier gains and closed lower, despite a positive White House crypto summit. Lumentum Holdings (LITE) saw a rise in its shares as leadership highlighted surging demand for AI infrastructure components. The market's uncertainty was further fueled by the U.S. national debt surpassing $40 trillion and rising bond yields, despite the Treasury's plan for a bond buyback.

However, it's worth noting that two-thirds of the stocks in the S&P 500 are still positive, indicating that the market is not in a dire situation just yet.