Stocks Slump as Bond Relief Fades, Walmart Dives on Weak Guidance

US stocks fell sharply on Thursday, with the Dow dropping 703 points, as relief from the Treasury's bond buyback plan quickly faded amid rising oil prices and the national debt topping $40 trillion. Walmart cratered over 8% after issuing cautious guidance, while Deere and Ross Stores surged on strong results. Nasdaq futures led a modest premarket rebound on Friday, though Treasury yields continued to climb.

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Dow plunges 703 points as bond market relief evaporates, yields climb The S&P 500 fell 0.9% for its fourth loss in five days, while the Nasdaq sank 1% as Treasury Secretary Bessent's plan to double long-duration bond buybacks proved short-lived. The 10-year yield rose to 4.707% and the 30-year to 5.254% as oil prices, inflation worries, and the national debt topping $40 trillion kept pressure on the market. 1 2 3 4 5

Walmart craters 8.8% as cautious guidance offsets earnings beat Walmart's Q2 revenue and EPS topped estimates, but weaker-than-expected US same-store sales growth and conservative Q3 guidance triggered a sharp selloff. Medicare drug pricing reforms pressured the health and wellness segment, amplifying concerns about the stock's elevated valuation. 6 7 8

Deere jumps 8% on AI construction boom, raises 2026 profit forecast Deere posted its first quarterly profit rise in three years, driven by an 18% jump in construction and forestry sales from AI data center buildouts and infrastructure spending. The company raised its full-year net income outlook to $4.75-$5 billion, though farm equipment demand remains weak. 9

Ross Stores surges 8% on raised outlook as value retail shines Ross Stores jumped more than 8% in premarket trading after raising its full-year outlook, leading a value retail rebound. The move contrasted with Walmart's slump, highlighting divergent consumer spending trends in the discount retail sector. 4

Coinbase jumps 8% as Trump backs CLARITY Act, crypto rally builds Coinbase shares surged 8% in premarket trading as Bitcoin reclaimed $70,000 and President Trump met with crypto executives, urging Congress to pass the CLARITY Act. About $3.3 billion in leveraged crypto positions were liquidated, fueling the rally. 10

SpaceX S-1 reveals Starlink drove 61% of 2025 revenue, only profitable segment SpaceX's 2026 S-1 filing shows its Connectivity segment generated $11.387 billion of $18.674 billion in 2025 revenue, the only division with operating profit. The Space segment lost $657 million and AI lost $6.355 billion, leaving a consolidated operating loss of $2.589 billion. 11

Nordson stock jumps 8% as Q3 beat drives guidance hike Nordson Corporation shares rose 8.22% after the company's Q3 earnings beat expectations and management raised full-year guidance. The precision dispensing equipment maker benefited from strong demand across its industrial and semiconductor end markets. 12

Fabrinet sees years of AI optical demand growth, expands capacity Fabrinet highlighted sustained AI-driven demand for optical components, announcing capacity expansion plans. The company's commentary reinforces the ongoing AI infrastructure buildout theme that has been a key market driver. 13