Summary
🔴 Walmart (WMT) -9.15% was the session’s single biggest drag, sinking despite an earnings beat after U.S. comparable sales badly missed expectations.
Moderna (MRNA) -19.9% gave back a chunk of Wednesday’s record cancer-vaccine rally as investors booked profits.
President Trump escalated his “economic warfare” campaign against Iran, and oil jumped as a result.
Risk appetite held up better in crypto, where bitcoin extended its buyback-driven surge from earlier in the week.
Major Indices & Breadth
🔴 S&P 500 closed at 7,641.16, -0.87%.
🔴 Nasdaq Composite fell -1.00% to 26,067.17.
🔴 Dow Jones dropped 703.84 points (-1.32%) to 52,759.21, its worst single-day point drop of the week.
🔴 Russell 2000 declined -1.34% to 2,992.43, underperforming the large-cap benchmarks.
All four major indices closed lower as bond-yield relief from Wednesday’s Treasury buyback announcement reversed.
🟢 Leaders
MRVL +1.9%
XOM +1.50%
KO +1.16%
🔴 Laggards
MRNA -19.9%
WMT -9.15%
BA -3.16%
SHW -2.99%
HD -2.85%
SPCX -2.6%
Earnings
🔴 WMT beat on both lines — adjusted EPS of $0.81 vs. $0.74 expected, revenue of $187.9B vs. $186.75B expected — but shares fell -9.15% after U.S. comparable sales rose just 2.6%, well below the roughly 3.7% Wall Street had modeled. Management raised full-year sales, operating-income, and EPS guidance, and said a roughly $2.9B tariff refund would be funneled into price cuts, but investors focused on the slowing comp growth and a soft Q3 EPS guide of $0.62–$0.64.
AI
🟢 Marvell (MRVL) +1.9% as its expanded custom-chip partnership with Alphabet’s Google (GOOGL) continued to reverberate: Google holds a warrant to buy up to $12.2B of Marvell shares tied to purchases across AI inference accelerators, networking, storage, and memory-interface silicon for its TPU ecosystem, a deal that could support up to $120B in qualifying revenue through fiscal 2033. JPMorgan reiterated an Overweight rating on the news.
🔴 Nvidia (NVDA) -0.45%, largely tracking the broader semiconductor/AI-infrastructure pullback.
🟡 Prediction markets remain skeptical Google’s chip push translates into AI-model leadership (see Prediction Markets).
Corporate
🔴 MRNA -19.9% as Wall Street reassessed valuation after Wednesday’s record +176.97% surge on positive Phase 3 melanoma-vaccine data from its cancer-vaccine partnership. Several analysts raised price targets following the trial results, but the new targets still sat below Wednesday’s close, and short interest of roughly 12.5% of float meant Thursday’s pullback also unwound some of the prior day’s short-covering dynamics.
🔴 SpaceX (SPCX) -2.6% as roughly 319 million restricted shares became eligible for sale under the company’s second post-IPO insider unlock.
Market Structure
🟡 Nothing to report today.
Macro/Policy
🟢 Initial jobless claims for the week ended August 15 fell to 206,000 from 212,000 the prior week, coming in better than expected and pointing to continued labor-market resilience.
🟢 The Philadelphia Fed’s manufacturing index posted its strongest reading since 2021, a positive surprise for regional factory activity.
🔴 The bigger story was bond-market policy: the effects of Wednesday’s surprise Treasury move to more than double buybacks of 10-, 20-, and 30-year debt proved short-lived, with yields rebounding across the curve Thursday (see Treasury Bonds). Treasury Secretary Scott Bessent said the buyback could be expanded beyond the initially announced pace.
🟡 The U.S. national debt surpassed $40 trillion this week, more than doubling in under a decade.
Treasury Bonds
🔴 2-year yield: 4.19%, +2bps.
🔴 10-year yield: 4.70%, +~5bps — back above where it stood before Wednesday’s buyback announcement.
🔴 30-year yield: 5.25%, +~5bps.
🟡 2s10s spread: +51bps, little changed as the curve rose in parallel.
🔴 Yields rose across the board as the relief from the Treasury’s debt-buyback intervention faded and investors judged it a short-term fix rather than a durable check on borrowing costs.
Geopolitics
🔴 President Trump escalated his campaign against Iran, vowing an “economic D-Day” — “Economic Warfare and Isolation on an unprecedented scale” — targeting any nation providing Iran a financial lifeline.
🔴 Treasury Secretary Bessent said the campaign of naval blockade plus new sanctions “could prevent the resumption of large-scale kinetic” conflict, comparing the strategy to prior pressure campaigns against Venezuela and Cuba, and said the toughest sanctions yet would be unveiled next week.
🟡 Iran’s foreign minister dismissed the campaign as certain to fail, and Strait of Hormuz shipping traffic has been largely unaffected so far.
🔴 Oil rallied on the headlines (see Commodities).
Foreign Markets
🟢 Japan’s Nikkei 225 rose +0.17% to 65,437.
🟢 UK’s FTSE 100 edged up +0.04% to 10,748.
🟢 China’s Shanghai Composite gained +0.24% to 3,904.
🟢 India’s Sensex rose +0.82% to 77,538, snapping a four-day losing run.
🔴 Germany’s DAX fell -0.44% to 25,976.
🔴 France’s CAC 40 dropped -0.63% to 8,448, extending its losing streak.
Currencies
🟢 DXY: 98.92, +0.09% — the dollar firmed modestly.
🔴 EUR/USD: 1.1672, -0.05%.
🟢 USD/JPY: 159.13, +0.61% — notable yen weakness versus the dollar.
🟢 GBP/USD: 1.3622, +0.11%.
Commodities
🟢 WTI crude: $86.21, +2.16%, rallying on the Iran economic-warfare headlines (see Geopolitics).
🟢 Brent crude: $93.36, +1.90%.
🟢 Gold: $4,575.10, +0.66%.
🟢 Silver: $67.84, +1.37%, touching a two-month high.
Crypto
🟢 Bitcoin (BTC): $72,799.41, +4.45%, extending a surge tied to this week’s Treasury buyback-driven yield relief and a last-ditch industry push for the Clarity Act.
🟢 Ethereum (ETH): $2,330.01, +3.66%.
Prediction Markets
🟡 Polymarket bettors give Alphabet’s Google just a 7% chance of having the world’s best AI model by the end of 2026, versus 66% for Anthropic, 14.5% for xAI, and 8% for OpenAI — a skeptical read on whether Google’s custom-silicon push (see AI) translates into model-level leadership.
Volatility
🔴 VIX: 16.01, +7.52%, a sharp jump in percentage terms but still a low absolute level historically.
Rest of Today & Tomorrow
July existing home sales are due Friday at 10:00 AM ET.
Treasury Secretary Bessent said additional Iran sanctions measures are coming “next week” — not tomorrow, but a headline risk worth watching into the weekend.
No major scheduled earnings identified for Friday morning as of publication.
3 Scenarios
🟢 Bullish: Bond-market jitters prove temporary as the Treasury signals further buyback expansion; jobless claims and the strong Philly Fed print reinforce a soft-landing narrative; Iran-related oil premium fades on any de-escalation signal. Indices stabilize and claw back Thursday’s losses into the weekend.
🟡 Neutral: Yields stay elevated but range-bound as markets digest the limits of the Treasury’s buyback tool; WMT‘s guidance overhang keeps consumer-discretionary names under pressure while AI-infrastructure names like MRVL hold up on deal flow. Indices chop without a clear catalyst.
🔴 Bearish: The bond-buyback “fix” is read as a one-off that can’t offset a structurally higher-for-longer yield backdrop; Bessent’s promised new Iran sanctions next week are read as escalatory rather than stabilizing, pushing oil and yields higher together; WMT‘s comp-sales miss is read as an early signal of consumer softening. Indices extend Thursday’s slide.
Final Take
Thursday was a reminder that Wednesday’s relief rally had a short shelf life.
The Treasury’s buyback intervention bought the bond market less than 24 hours of calm before yields rebounded across the curve.
WMT‘s post-earnings plunge did the most visible damage to the tape, a reminder that a slowing comp print can outweigh a clean beat-and-raise when a stock is priced for perfection.
MRNA‘s pullback was less a market signal than simple mean reversion after an historic one-day move.
The bigger story running underneath the session is the Iran economic-pressure campaign, which is now pushing oil higher in a way that could complicate the Fed’s inflation math if it persists.
With Bessent teasing a fresh round of sanctions next week, this is a story to keep watching heading into the weekend.
Source: CNBC, Yahoo Finance, Bloomberg, Trading Economics, Reuters, Fox News.
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