What Happened Last Week · What Is Coming This Week
Rising Yields and Walmart's Plunge Drag Stocks Lower
Last Week
Rising long-term Treasury yields and geopolitical risk defined the week, with investors turning cautious ahead of Jackson Hole and Nvidia's earnings. The 30-year Treasury yield climbed to its highest level since 2007, prompting the Treasury to double its long-dated bond buybacks to calm the selloff. Tensions around the Strait of Hormuz kept oil elevated early in the week and revived inflation worries, though prices steadied by Friday after Iran's president signaled a willingness to end the conflict soon.
Retailers were the corporate focus, with more than 300 companies reporting on the week. Walmart beat expectations and raised its guidance, yet the stock still slid roughly 10% on Thursday, August 20, dragging all three major indexes lower. earned $4.92 per share against a $4.88 estimate, topping on profit even as revenue came in slightly light. beat with $4.40 versus $4.29 expected, and Target's $2.46 result reinforced its turnaround story. Under the surface, defensive sectors such as healthcare and materials advanced while rate-sensitive industrials and utilities fell.
