US Stocks Fall as Walmart Slides Amid Higher Treasury Yields

The US stock market experienced a decline on Thursday, with the Dow Jones Industrial Average falling by around 0.6% and the S&P 500 dropping by about 0.2%. The Nasdaq Composite also slipped, down approximately 0.3%, as investors weighed stronger economic data, persistent inflation risks, and rising oil prices.

The weakness in the market was largely driven by Walmart's disappointing post-earnings decline. The retailer's shares plummeted over 8% after it reported a lower-than-expected U.S. comparable sales growth of 2.6%, below the analysts' estimate of 3.8%. Despite revenue rising 5.9% to around $187.9 billion and adjusted earnings topping estimates, investors focused on slower store sales and cautious guidance.

The higher gasoline prices have been putting pressure on lower-income shoppers and discretionary spending. Walmart's results added to concerns about how long U.S. consumers can absorb elevated living costs. Consumer staples fell by around 1.6%, with consumer discretionary stocks also among the weakest groups, as Amazon and Tesla declined.

However, gains in Nvidia and Apple helped limit the broader market's losses. The bond market remained a concern for Wall Street, with the 10-year Treasury yield climbing to about 4.70% and the 30-year yield reaching roughly 5.24%, reversing part of Wednesday's decline. Higher yields raise financing costs and make high stock valuations harder to justify.

Crypto-linked stocks bucked the trend, with Strategy gaining more than 6% and Coinbase rising over 5% after President Donald Trump called on Congress to advance crypto legislation.