Wall Street sinks as bond yields rise, Walmart results disappoint
The Dow Jones Industrial Average fell 703.84 points, or 1.32 per cent, to 52,759.21.
On August 20, major US equity indexes experienced a decline as bond yields rose, impacting investor sentiment. The Dow Jones Industrial Average fell 703.84 points, or 1.32%, to 52,759.21, the S&P 500 lost 66.82 points, or 0.87%, to 7,641.16, and the Nasdaq Composite slipped 263.92 points, or 1%, to 26,067.17. Walmart's shares plummeted by 9.2%, falling below investor expectations for quarterly comparable sales, which were negatively influenced by rising gasoline prices and reduced consumer spending.
This downturn affected the S&P 500's consumer staples and consumer discretionary sectors, contributing to the weakest performance among the benchmark's 11 major industry indexes. Retail rival retailers like Costco, Dollar Tree, and Albertsons also suffered losses between 1% and 2.6%. Mona Mahajan, head of investment strategy at Edward Jones, highlighted the strain rising bond yields could place on equities, as stocks had rallied the previous day following the US Treasury's decision to repurchase bonds to curb yield increases.
However, bond yields surged again, exacerbating market concerns. The 30-year and 10-year bond yields briefly paused their gains after Treasury Secretary Scott Bessent suggested another increase in government bond repurchase volume. Market data revealed that declining issues significantly outnumbered advancing ones on both the NYSE and Nasdaq, with the S&P 500 concluding more than 2% below its recent record close, while the Nasdaq was more than 3% below its June 2 record finish.
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