U.S. stocks declined sharply on Thursday as Treasury yields continued to rise despite an aggressive debt buyback initiative by the Treasury Department aimed at tamping down long-term borrowing costs. The Dow Jones Industrial Average dropped 703.84 points, or 1.32%, closing at 52,759.21, partly pressured by a nearly 9% plunge in Walmart shares after its comparable sales and earnings guidance fell short of expectations. The S&P 500 slipped 0.87% to close at 7,641.16, while the Nasdaq Composite lost 1% to end at 26,067.17.

The Treasury’s plan to double repurchases of 10-, 20-, and 30-year government debt did not succeed in lowering yields sustainably. The 10-year Treasury yield climbed above 4.7%, and the 30-year yield hovered near a two-decade high at over 5.24%. Treasury Secretary Scott Bessent indicated the buyback operation might exceed the initially announced $4 billion target. Still, some investment professionals, such as Adam Phillips from EP Wealth Advisors, expressed skepticism, citing deeper structural challenges in the bond market that simple buybacks may not fix.

Additional pressures on equities came from rising oil prices amid escalating tensions with Iran, as President Donald Trump vowed to unleash unprecedented “economic warfare” and impose the toughest sanctions in history against Tehran. Brent crude futures rose more than 2% to $93.78 a barrel, and West Texas Intermediate crude climbed nearly 3% to $86.83 a barrel. This geopolitical stress coupled with inflation concerns added to investor unease over borrowing costs and corporate earnings.

Walmart’s disappointing performance underscored broader market fragility, representing its worst trading day since May 2022 following weaker-than-expected sales and earnings guidance. Meanwhile, other sectors saw mixed results, with technology stocks and some Asian markets rallying modestly on hopes of stabilization. However, the overall market sentiment remained cautious amid persistent inflationary pressures, geopolitical risks, and doubts about whether government interventions would effectively ease Treasury yield spikes.