Wall Street closed lower on Thursday (Friday AEST) as rising Treasury yields weighed on risk appetite, while disappointing results from retail giant Walmart pressured consumer stocks and higher oil prices fuelled inflation concerns.
The Dow Jones Industrial Average fell 703.8 points, or 1.3%, to 52,759.2, while the S&P 500 lost 66.8 points, or 0.9%, to 7,641.2. The Nasdaq Composite declined 263.9 points, or 1.0%, to 26,067.2.
Walmart shares tumbled 9.2% after the world's largest traditional retailer missed Wall Street expectations for quarterly comparable sales, as higher gasoline prices weighed on consumer spending.
Other retailers also declined, with Costco down 2.5%, Dollar Tree losing 2.6% and Albertsons slipping 1.2%.
Treasury yields briefly pared gains after U.S. Treasury Secretary Scott Bessent said the government could again increase the volume of Treasury bonds it repurchases. Yields subsequently resumed their upward trend.
Meanwhile, cryptocurrency-related stocks rallied, with Strategy and Coinbase Global gaining more than 7% after U.S. President Donald Trump urged Congress to pass cryptocurrency legislation.
In the healthcare sector, biotech company Moderna was the biggest decliner, plunging 23.5% after surging nearly 177% in the previous session.
Deere shares rose 6.9% after the world's largest farm-equipment manufacturer raised its full-year net income forecast.
On the bond markets, 10-year and two-year Treasury yields rose 1.4% and 0.7%, respectively, to 4.708% and 4.19%.
