Wall Street sinks as bond yields rise
The three main US equity indexes closed lower on Thursday as rising Treasury yields dented risk appetite while disappointing results from retail bellwether Walmart soured investors on the consumer sector and rallying oil prices fanned inflation worries. Walmart shares tumbled 9.2 percent after the world's largest traditional retailer missed Wall Street expectations for quarterly comparable sales…
On Thursday, Wall Street experienced a decline as rising bond yields dampened investor appetite for risk, with disappointing quarterly sales from Walmart contributing to the downward trend. The three main US equity indexes, Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, all closed lower. Walmart's shares suffered the most significant drop, falling 9.2 percent after missing Wall Street expectations for quarterly comparable sales.
The increase in oil prices, which surpassed US$87, added to concerns about the health of the US consumer. Mona Mahajan, head of investment strategy at Edward Jones, highlighted the anxiety among investors due to weaker-than-expected retail sales and labor market data for July. Rising bond yields posed another challenge to equities, as Wall Street indexes had risen the previous day following the US Treasury Department's announcement to spend more than double the expected amount on buying back bonds to mitigate the yield surge.
However, yields advanced again on Thursday, causing stocks to decline. While the Treasury Secretary briefly increased the volume of Treasury bonds the government would repurchase, bond yields resumed their upward trend.
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- Wall Street sinks as bond yields rise freemalaysiatoday.com
