Traders work at the New York Stock Exchange (NYSE) in New York City, USA, July 23, 2026.Brendan McDermid | ReutersUSA Stocks fell as Treasury yields continued their march higher despite the Treasury Department’s extraordinary debt buyback operation, raising concerns that higher borrowing costs will weigh on the bull market. The Dow Jones Industrial Average lost 703.84 points, or 1.32%, hurt by a 9% drop in Walmart shares. The 30-share index closed at 52,759.21. The S&P 500 lost 0.87% to close at 7,641.16, while the Nasdaq Composite fell 1% to 26,067.17. Bond yields advanced Thursday, with the 10-year Treasury yield rising back above the level it was at just before the Treasury Department said Wednesday morning that it will at least double buybacks of 10-, 20- and 30-year debt in the coming months. Treasury Secretary Scott Bessent told CNBC on Thursday that the debt buyback operation could actually be larger than the $4 billion announced. The 10-year yield gained more than 5 basis points to 4.704%. The 30-year Treasury yield added more than 5 basis points to 5.248%. The 30-year yield hit its highest level in nearly 20 years earlier this week. However, Adam Phillips, managing director of investments at EP Wealth Advisors, is skeptical that the buyback program will be enough to provide any relief. “This is not the cure for what ails the bond market. There are structural forces at play here that are really beyond the control of the Treasury and the administration,” he said, adding that the relief seen after past interventions has generally been short-lived. “You’ll have to attack with a little more force if you want to have staying power.” Also weighing on stocks, oil prices rose again amid rising tensions between Iran and the U.S. Speaking about Iran, President Donald Trump said in a Truth Social post on Wednesday that the U.S. would begin the “MOST CRUSHING ECONOMIC OPERATION EVER CONDUCTED AGAINST ANY COUNTRY.” “This will be economic warfare and isolation on an unprecedented scale,” he said. he wrote.On that front, Bessent said in an interview Thursday with CNBC that the United States is going to impose the “toughest sanctions in history” against Iran. The West Texas Intermediate crude contract for October delivery rose nearly 3% to $86.83 a barrel, while global benchmark Brent crude futures rose more than 2% to $93.78 a barrel. A pullback in Walmart stock also hurt the broader market. The retail giant was headed for its worst day in more than four years after its U.S. comparable sales missed analyst expectations, as did its adjusted earnings forecast for both the third quarter and the full year. Wall Street is coming off a winning session, with the S&P 500 snapping a three-session losing streak, while longer-term U.S. Treasury yields retreated from multi-year highs after the government unveiled a plan to relieve pressure from a recent bond market decline. CNBC’s Tobias Burns contributed reporting.
