Dow drops 350 points as Treasury yields rise, Walmart stock falls

U.S. stocks slid Thursday as a rebound in Treasury yields and a sharp sell-off in Walmart weighed on risk appetite. The Dow Jones Industrial Average fell about 350 points, or 0.6%, while the S&P 500 dipped 0.3% and the Nasdaq Composite lost 0.4%.

Yields rebound, pressuring equities

Bond yields turned higher, erasing the prior session’s pullback that followed the Treasury Department’s plan to at least double repurchases of 10-, 20-, and 30-year debt over the coming months. The 10-year Treasury yield rose more than 5 basis points to about 4.704%, and the 30-year climbed roughly 6 basis points to near 5.254%, after touching its highest level in nearly two decades earlier this week.

The buyback initiative drew skepticism among market watchers who argued it may offer only temporary relief without a more comprehensive approach to the nation’s fiscal challenges. Some even likened the move to “rearranging deckchairs on the Titanic,” pointing to the lack of a clear plan to rein in the country’s growing debt load.

Others echoed a cautious outlook for rates, noting that persistent budget deficits and rising defense spending could keep upward pressure on longer-dated yields. Higher yields tend to weigh on equity valuations by increasing borrowing costs and offering investors more attractive fixed-income alternatives.

Walmart slump hits the Dow

Walmart shares tumbled about 8% after the retailer’s U.S. comparable-store sales came in below expectations. The company also issued a disappointing adjusted earnings outlook for the third quarter and the full year, amplifying investor concerns about the retail backdrop and consumer spending trends heading into the holiday season. Given Walmart’s hefty market capitalization and role as a consumer bellwether, the slide exerted an outsized drag on the Dow.

Energy prices add to the headwinds

Oil advanced, further pressuring equities. West Texas Intermediate crude futures rose around 2% to roughly $88 a barrel, while Brent gained about 3% to top $94. The move followed a high-profile announcement of tougher economic actions targeting Iran, which stoked supply concerns and added to broader macro uncertainty.

Crypto-related stocks buck the trend

Digital-asset–linked shares outperformed despite the broader market’s decline. Bitcoin climbed roughly 4.7% to around $71,610, buoyed by policy headlines viewed as supportive for the sector and ongoing momentum within the crypto ecosystem.

What to watch next

Markets remain highly sensitive to moves in long-term Treasury yields, which continue to set the tone for equities and credit. Oil prices, corporate earnings guidance, and signs of fiscal or policy shifts will likely shape near-term risk appetite. With valuations facing pressure from higher discount rates and profit outlooks in flux, investors are watching for clearer signals on growth, inflation, and the trajectory of government borrowing.