US stocks fell on Thursday, wiping out the prior session’s gains, which had been driven by the Treasury’s move to suppress longer-term yields. The S&P 500 declined 0.4%, while both the Dow and the Nasdaq 100 slipped about 0.7%.
Treasury yields climbed across the curve, reflecting concerns that the government’s efforts to support notes and bonds could aggravate an already inflationary environment given abundant dollar liquidity. Borrowing costs were further pressured higher by rising fuel and gas prices after President Trump said the US had entered an “economic war” with Iran, extending blockades on tankers transiting the Persian Gulf.
Banks deepened their losses as short-term Treasury securities sold off further, with JPMorgan and Wells Fargo trading in negative territory. In addition, AI hyperscalers were mostly lower after subdued financial results from OpenAI, which failed to match the growth pace of rival Anthropic.
Walmart dropped 8%—its steepest single-day decline in four years—after its second-quarter sales came in below expectations.
