Stock Market Sinks Amid Weak Walmart Earnings and Rising Bond Yields

Stock indexes are down due to concerns over consumer spending after Walmart reported weaker-than-expected Q2 EPS and higher bond yields. The Dow Jones Industrials fell to a 1-week low, with the S&P 500 and Nasdaq 100 also moving lower. The US Aug S&P manufacturing PMI unexpectedly expanded at the fastest pace in three years, while US weekly initial unemployment claims rose to a 2-month high of 235,000.

Stock indexes are down today, with the S&P 500 ($SPX) (SPY) falling by -0.40%, the Dow Jones Industrials Index ($DOWI) (DIA) dropping by -0.64%, and the Nasdaq 100 Index ($IUXX) (QQQ) declining by -0.39%. This comes on the heels of Walmart's weaker-than-expected Q2 earnings and rising bond yields [1].

The Dow Jones Industrials fell to a one-week low, while the S&P 500 and Nasdaq 100 also moved lower. The 10-year Treasury note yield rose by 3 basis points to 4.32% after Kansas City Fed President Jeffrey Schmid expressed that inflation risks are higher than labor market risks, and a "modestly restrictive" monetary policy is still appropriate [1].

The US Aug S&P manufacturing PMI unexpectedly expanded at the fastest pace in three years, rising to 53.3, which is better than expectations of a decline to 49.7 [1]. However, US weekly initial unemployment claims rose to a 2-month high of 235,000, showing a weaker labor market than expected [1].

The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. Later today, July existing home sales are expected to fall by -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell will speak on the economic outlook at the Federal Reserve's annual symposium at Jackson Hole, Wyoming [1].

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[1] https://www.nasdaq.com/articles/stocks-pressured-weak-walmart-earnings-and-higher-bond-yields