US stocks opened lower on Thursday, with the Dow Jones Industrial Average dropping 345 points (0.65%), as Treasury yields rebounded from the previous session's decline and oil prices extended gains. The S&P 500 slipped 0.19%, while the Nasdaq Composite fell 0.3%, reversing some of Wednesday's gains when the S&P 500 snapped a three-session losing streak.
Treasury yields climb as oil prices surge
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%. This rebound followed Wednesday's sharp drop after the government announced plans to at least double buybacks of long-dated debt over the coming months. The 30-year yield had earlier hit a nearly two-decade high amid inflation worries and rising government debt, which has now surpassed $40 trillion.
Oil prices added to the pressure, with West Texas Intermediate crude climbing about 3% to above $88 per barrel and Brent crude gaining roughly 3% to over $94. The fifth consecutive session of gains was driven by stalled US-Iran peace talks and supply disruptions in the Middle East, heightening concerns about energy costs feeding into inflation.
Walmart slides on weak sales
Walmart shares tumbled more than 7.7% 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 estimates. The decline intensified worries about consumer spending, as higher gasoline prices squeeze household budgets. This comes on the heels of Walmart's earnings miss, which has cast a shadow over the retail sector.
Technology stocks were mixed in early trading, with Alphabet and Meta edging lower while Nvidia and Apple ticked slightly higher. Investors remained cautious as higher borrowing costs weigh on tech companies investing heavily in AI infrastructure, a trend highlighted in recent market moves.
Fed minutes and economic data in focus
The Federal Reserve's July meeting minutes, released Wednesday, showed 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 move toward the 2% target. Markets are now 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, Moderna retreats
Cryptocurrency-related stocks advanced after President Donald Trump called on Congress to pass a crypto bill. Strategy shares gained 5%, and Coinbase rose 4.4%, as Bitcoin and other digital assets remained in focus following recent policy developments in Washington. This rally builds on the momentum seen in recent crypto surges.
Meanwhile, Moderna shares fell more than 15%, giving back part of Wednesday's surge of nearly 177% after positive late-stage trial results for its personalized mRNA cancer treatment with Merck. Elsewhere, Deere gained 2.5% after raising the lower end of its full-year net income forecast.
The broader market remains caught between strong corporate earnings and mounting pressure from higher bond yields, elevated oil prices, and renewed inflation concerns.
This article is for informational purposes only and does not constitute financial advice.
