Traders work on the floor of the New York Stock Exchange (NYSE) on July 23, 2026 in New York City, USA.
Brendan McDiarmid | Reuters
U.S. stocks fell as Treasury yields continued to rise despite the Treasury Department’s unprecedented bond buyback campaign, raising concerns that rising borrowing costs could hurt the bull market.
of Dow Jones Industrial Average The 9% decline weighed on it, resulting in a decline of 703.84 points (1.32%). walmart KK. The 30-stock index ended at 52,759.21. of S&P500 It fell 0.87% to close at 7,641.16. Nasdaq Composite It fell 1% to 26,067.17.
Bond yields rose on Thursday, yields 10 year treasury That’s above the level just before Wednesday morning, when the Treasury Department announced it would at least double its buybacks of 10-, 20-, and 30-year bonds in the coming months. Treasury Secretary Scott Bessent told CNBC on Thursday that the bond buyback operation could actually be larger than the $4 billion announced.
The yield on the 10-year Treasury rose more than 5 basis points to 4.704%. of 30 year treasury Bond yields rose more than 5 basis points to 5.248%. The 30-year Treasury yield soared to its highest level in nearly 20 years earlier this week.
But Adam Phillips, managing director of investments at EP Wealth Advisors, is skeptical that a share buyback program will be enough to provide any relief.
“This is not a cure for what’s ailing the bond markets. There are structural forces at play here that are really beyond the control of Treasury and the administration,” he said, adding that bailouts seen in the wake of past interventions have generally been short-lived. “We will need to put in a little more effort to make it sustainable.”
Oil prices also rose again amid rising tensions between Iran and the US, also weighing on stocks President Donald Trump said in a Truth social post on Wednesday when discussing Iran that the US would launch “the most devastating economic operation ever waged against any country.”
“This will be an economic war and isolation of unprecedented proportions,” he wrote.
In this regard, Bessent said in an interview with CNBC on Thursday that the United States intends to impose “the toughest sanctions in history” against Iran.
west texas intermediate crude oil The contract for October delivery rose nearly 3% to $86.83 a barrel, while the global benchmark brent crude oil futures It rose more than 2% to $93.78 per barrel.
The decline in Walmart stock also affected the overall market. The retail giant had its worst day in more than four years as comparable U.S. sales fell short of analysts’ expectations and adjusted profit estimates for both the third quarter and full year were also missed.
Wall Street is coming off a winning session, with the S&P 500 index snapping a three-session losing streak as long-term U.S. Treasury yields fell from multi-year highs after the government announced plans to ease pressure from the recent bond market selloff.
—CNBC’s Tobias Burns contributed reporting.
