The benchmark indexes are on track to end the week lower, with the S&P 500 and Nasdaq likely to snap three weeks of gains.
- U.S. Treasury Secretary Scott Bessent said on Thursday in an interview with CNBC that Washington will impose “the toughest sanctions in history” on Iran.
- The U.S. 30-year Treasury yield was trading at 5.251% at the time of writing, while the U.S. 10-year Treasury yield climbed to 4.704%.
- Meanwhile, Walmart Inc. (WMT) added to the risk-off sentiment, with shares tumbling more than 9% at close after the retailer posted weaker-than-expected quarterly results.
U.S. stock futures edged higher in the overnight session late Thursday after a sharp pullback at the close amid rising U.S. Treasury yields.
Dow futures climbed 0.01%, while the S&P 500 futures and Nasdaq-100 futures were also up 0.08% and 0.22% at 10:09 PM EDT.
On Thursday, all three benchmark indexes closed lower. The Dow Jones Industrial Average led the decline, falling 1.32% at close. Meanwhile, the S&P 500 and the Nasdaq Composite also ended the session down 0.87% and 1%, respectively.
| Index | Move | Close |
| Dow Jones Industrial Average | -1.32% | 52,759.21 |
| S&P 500 | -0.87% | 7,641.16 |
| Nasdaq Composite | -1.00% | 26,067.17 |
The benchmark indexes are also on track to end the week lower, with the S&P 500 and Nasdaq likely to snap three weeks of gains.
Key US Market Drivers
Geopolitical tensions were back in focus on Thursday after U.S. President Donald Trump said on Wednesday that there would be “Economic Warfare and Isolation on an unprecedented scale” on Iran amid the ongoing tensions.
U.S. Treasury Secretary Scott Bessent reiterated the stance on Thursday in an interview with CNBC, saying that Washington will impose “the toughest sanctions in history” on Iran.
Bessent also urged Beijing to cooperate with the U.S. The Treasury Secretary is expected to hold a press conference on Monday to provide further details.
“It is a one-two punch. We have the blockade (on Iran), and we are going to have the toughest sanctions in history,” Bessent told CNBC. “It is going to work in Iran and we are going to collapse this regime.”
Treasury yields climbed back up amid the statements, with inflation concerns rearing their head once again. The U.S. 30-year Treasury yield was trading at 5.251% at the time of writing, while the U.S. 10-year Treasury yield climbed to 4.704%.
“Looking at this two-day Bloomberg chart, the retracement in 30-year government bond yields (i.e., higher) isn’t surprising, given what history tells us about the inherent short-term effects of announcements like the one we heard from the Treasury yesterday. What is surprising is the speed and magnitude of the retracement,” Mohamed El-Erian, Chief Economic Advisor at Allianz, said in a post on X.
Global oil prices were lower at the time of writing on Thursday. Brent crude futures expiring in October were down about 0.05%, trading at $93.73 a barrel at the time of writing. Meanwhile, WTI crude futures expiring in September were trading at $86.69 per barrel, up about 0.16%.
Meanwhile, Walmart Inc. (WMT) added to the risk-off sentiment, with shares tumbling more than 9% at close after the retailer posted weaker-than-expected quarterly sales growth and flagged a softer consumer backdrop as elevated fuel costs pressure household spending.
The selloff extended across other consumer-facing stocks, with Amazon.com Inc. (AMZN) and Home Depot (HD), which closed more than 2% and nearly 3% lower.
Trending Stocks To Watch
Strategy (MSTR): Shares of the company were in focus after it jumped nearly 8% at close and continued to climb higher amid a jump in Bitcoin prices.
Marathon Digital Holdings Inc. (MARA): The digital asset and cryptocurrency company also gained over 15% at close and was up overnight by more than 2% after Bitcoin prices surged to nearly $75,000.
Coinbase Global Inc. (COIN): This cryptocurrency platform also garnered retail attention amid a surge in Bitcoin prices. Meanwhile, CEO Brian Armstrong said in an interview on Thursday that the cryptocurrency market may be “on the cusp” of the next bull market.
Walmart Inc. (WMT): The retailer’s shares plunged by over 9% at close after its second-quarter (Q2) results missed Wall Street expectations and third-quarter (Q3) guidance also failed to impress investors.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all traded higher at the time of writing
The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.07% amid ‘bullish’ sentiment.
Asian markets were trading mixed at the open on Friday. South Korea’s KOSPI and China’s SSE Composite were trading higher at the time of writing, while Japan’s Nikkei 225 and Australian stocks were all in the red.
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