1 week ago
Wall Street Slides as Bond Yields Rebound, Walmart Drops
US stock markets fell sharply on Thursday, August 20.
The Dow Jones lost 700 points.
Other major indexes also declined.
Bond yields rose again after briefly falling following action by the US Treasury Department.
Higher yields can make investors more cautious about buying stocks.
Walmart shares dropped after its latest results disappointed investors.
Alibaba also fell because spending on artificial intelligence hurt its profits.
Investors are now watching bond yields, oil prices, and developments in West Asia.
The Dow Jones fell 700 points, while the S&P 500 declined 0.8%.
The Nasdaq Composite dropped 1% and the Nasdaq 100 lost 0.7%.
The 10-year Treasury yield rebounded to 4.71%, while the 30-year yield reached 5.24%.
Walmart shares plunged 9% after quarterly results, despite a marginally higher outlook.
Alibaba fell 5% as increased artificial-intelligence spending reduced quarterly profitability.
- Who
- US stock-market investors, the US Treasury Department, Walmart, Alibaba, and Treasury Secretary Scott Bessent.
- What
- Wall Street indexes fell sharply as bond yields rebounded and major companies reported weak or concerning quarterly results.
- Where
- US financial markets and the US Treasury bond market.
- When
- Thursday, August 20; the article also says Bessent will detail sanctions on the following Monday.
- Why
- The Treasury-driven decline in bond yields was short-lived, while elevated oil prices and disappointing reactions to Walmart and Alibaba results weakened sentiment.
Key facts
- Dow Jones
- Fell 700 points.
- S&P 500
- Declined 0.8%.
- Nasdaq Composite
- Dropped 1%.
- 10-year Treasury yield
- Rebounded to 4.71% after falling to 4.63%.
- 30-year Treasury yield
- Reached 5.24% after declining to 5.18%.
- Walmart shares
- Fell 9%, their biggest single-day drop in more than four years.
- Alibaba shares
- Dropped 5% after artificial-intelligence spending reduced profitability.
- Oil prices
- Brent crude briefly exceeded $94 a barrel, while WTI remained above $86.
Quotes
Scott Bessent
US Treasury Secretary
“This is just one among the large toolkit we possess to calm nerves in the bond market, and the maximum buyback size could well be over $4 billion depending upon the market conditions.”
CNBC TV 18
Sources
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