Dow plunges 600 points as yields surge, Walmart sinks 9%

Wall Street's worst session in two weeks came down to a single number: the 10-year Treasury yield climbing back above 4.70 percent.

The Dow fell 605 points, or 1.1%, to 52,858 on Thursday as rising Treasury yields and a 9 percent slide in Walmart shares pressured equities.

"There are a couple of headwinds that the markets woke up to today," said Mona Mahajan, head of investment strategy at Edward Jones. "One was a resumption in the increase in bond yields across the curve that came despite yesterday's Treasury move."

The S&P 500 lost 0.7 percent and the Nasdaq Composite dropped more than 1 percent. Consumer staples fell 1.5 percent and consumer discretionary dropped 1.9 percent, among the weakest sectors, after Walmart missed Wall Street expectations for quarterly comparable sales. Rival retailers followed, with Albertsons down 1.5 percent and Costco down 2.3 percent. US crude oil trading above $87 added to the pressure, touching its highest level since late July.

The 10-year Treasury yield climbed to roughly 4.71 percent and the 30-year yield to 5.25 percent, near two-decade highs, after giving up most of the relief from Wednesday's buyback-driven gains. Treasury Secretary Scott Bessent said he may again increase the volume of bonds the government repurchases, with single operations potentially exceeding $4 billion, but yields resumed their advance within 24 hours.

Walmart's 9 percent decline accounted for roughly 13 percent of the Dow's slide, or about 62 points, given the index's price-weighted structure. The other roughly 400 points reflected a broader valuation adjustment as discount rates rose across the index. The retailer posted revenue of $187.94 billion, up 5.9 percent year over year and above the $186.77 billion consensus, with adjusted EPS of $0.81 beating the $0.74 forecast. But US comparable sales rose just 2.6 percent, missing the 3.8 percent projection and marking the slowest growth since 2020, as higher gasoline prices and financial strain on lower-income shoppers curbed spending. The company lowered prices on 11,000 products and received $2.9 billion in tariff reimbursements.

Yields Resume Climb Despite Buyback Pledge

The yield move reversed within a day of the Treasury Department saying it would spend more than double the expected amount on buying back bonds. Bessent said the government has "a big tool kit" and may push single long-bond buyback operations past $4 billion. Investors instead sought fiscal signals, leaving the 30-year yield near levels not seen in two decades.

Crypto Rallies, Retailers Slide

Crypto-related companies rallied a day after President Trump called on Congress to pass a crypto bill, with bitcoin hoarder Strategy adding 6.7 percent and exchange operator Coinbase Global rising 7 percent. Moderna dropped nearly 23 percent a day after surging almost 177 percent. Deere gained 6.6 percent after raising its full-year net income forecast, while Coty fell nearly 8 percent and Advance Auto Parts tumbled 26 percent after issuing weaker annual sales forecasts.

Investors are watching whether the 10-year yield holds above 4.70 percent, a level that keeps discount-rate pressure broad across the index. Walmart's revised analyst targets, due in coming days, will offer the next read on whether the retail bellwether's slowdown is a company-specific issue or a signal of broader consumer strain.

This article is for informational purposes only and does not constitute investment advice.