QUICK SPARK: Dow Falls 700 Points, Nasdaq Drops 1% As Yields Rise Again

Benzinga Earnings
08/21

The Dow Jones Industrial Average, tracked by the SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), shed 700 points on Thursday as Walmart (NASDAQ:WMT) shares sank 9%.

The S&P 500, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), lost 0.7% and the Nasdaq Composite, tracked by the Invesco QQQ Trust (NASDAQ:QQQ), dropped 1% as the 10-year Treasury yield climbed more than 5 basis points to 4.706% and the 30-year yield rose more than 5 basis points to 5.251% after spiking earlier this week to its highest level in nearly 20 years.

The Treasury said it will at least double repurchases of 10-, 20- and 30-year debt in the coming months, and Treasury Secretary Scott Bessent said the buyback operation could be larger than the $4 billion announced.

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Walmart’s Slow Sales Growth Hits Stock

Walmart‘s (NASDAQ:WMT) stock took a significant hit after reporting its slowest domestic sales growth in six years. On Thursday, the retail giant’s shares dropped 9.4% to $103.62, marking its sharpest single-session decline in four years.

Despite beating earnings expectations with an adjusted EPS of 81 cents against a 74-cent consensus and revenue of $187.9 billion, U.S. comparable sales rose just 2.6% against the expected 3.8%. The margin beat was heavily reliant on tariff refunds.

The company did raise its full-year adjusted EPS guidance to $2.80-$2.87, but investors remain cautious about its future performance.

Consumer Spending Concerns Weigh on Market

Walmart’s earnings report signals potential caution in consumer spending, a critical component of the U.S. economy. The retailer’s Q2 earnings reflect a weakening consumer, even as spending has mostly continued. Walmart’s results provided a contrary data point, adding pressure to the broader stock market.

As the largest U.S. retailer, Walmart’s performance is a key indicator of consumer health. Thursday’s report suggests that the market’s assumption of continued consumer spending may need reevaluation.

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Photo: Shutterstock

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