US stocks opened lower on Thursday as Treasury yields rebounded from the previous session’s decline, while rising oil prices and weaker-than-expected Walmart results added pressure to equities.
The Dow Jones Industrial Average fell 345 points, or 0.65%, while the S&P 500 declined 0.19% and the Nasdaq Composite dropped 0.3%.
The moves followed a stronger session on Wednesday, when the S&P 500 ended a three-session losing streak.
Treasury yields rebound as oil prices rise
Treasury yields moved higher after falling sharply on Wednesday following the government’s announcement that it would at least double buybacks of 10-, 20- and 30-year debt over the coming months.
The 10-year Treasury yield rose more than five basis points to 4.704%, while the 30-year yield gained six basis points to 5.254%.
The 30-year yield had climbed to a nearly two-decade high earlier this week amid concerns over inflation, government debt and higher energy prices.
The Treasury’s buyback announcement had briefly eased pressure in the bond market and supported risk appetite during Wednesday’s session.
However, Thursday’s rebound in yields renewed concerns over the impact of higher borrowing costs on equities, particularly technology companies that are investing heavily in artificial intelligence infrastructure.
US debt also hit $40 trillion, adding to debt concerns.
Oil prices added to the pressure. West Texas Intermediate crude futures rose about 3% to above $88 a barrel, while Brent crude gained around 3% to above $94.
Oil prices extended gains for a fifth consecutive session amid stalled US-Iran peace talks and disruptions to energy supplies in the Middle East.
Walmart shares slide after sales miss
Walmart shares fell more than 7.7% in trading after the retailer reported weaker-than-expected US comparable sales and provided adjusted earnings forecasts for the third quarter and full year that missed analyst expectations.
The decline in Walmart added to concerns about consumer spending as higher gasoline prices weigh on household budgets.
Other major technology stocks were mixed in early trading. Alphabet and Meta edged lower, while Nvidia and Apple ticked slightly higher.
Investors were also assessing the Federal Reserve’s latest policy signals.
Minutes from the central bank’s July meeting, released Wednesday, showed that officials remained concerned about inflation, with several policymakers favoring a rate increase and many indicating that tighter policy could be required if inflation fails to decline toward the Fed’s 2% target.
Markets are awaiting weekly jobless claims data and comments from St. Louis Fed President Alberto Musalem for further clues on the economic and interest-rate outlook.
Crypto stocks rise as Moderna retreats
Cryptocurrency-related stocks advanced after US President Donald Trump called on Congress to pass a crypto bill. Strategy shares gained 5%, while Coinbase rose 4.4%.
The gains came as Bitcoin and other digital assets remained in focus following recent policy developments in Washington.
Meanwhile, Moderna shares fell more than 15% in trading, giving back part of Wednesday’s surge of nearly 177%.
The stock had jumped after Moderna and Merck reported positive late-stage trial results for their personalized mRNA cancer treatment targeting melanoma.
Elsewhere, Deere shares gained 2.5% after the farm-equipment maker raised the lower end of its full-year net income forecast range.
The broader market remains caught between strong corporate earnings and mounting pressure from higher bond yields, elevated oil prices and renewed inflation concerns.
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