Treasury Yields Push Stocks Lower After Walmart Miss

Treasury yields rose on Aug. 20, 2026, and, together with higher oil prices and weaker-than-expected Walmart U.S. comparable sales, pushed major U.S. equity indexes lower after a brief relief from a Treasury buyback program the prior day.

Treasury Buybacks, Yields, and Market Reaction

On Aug. 19, Treasury Secretary Scott Bessent announced the department would at least double the size of its long-term debt buybacks, raising the per-operation maximum from $2 billion to at least $4 billion. The buybacks target 10-, 20-, and 30-year maturities and are scheduled to run from Sept. 9 through Nov. 4, 2026. The move aimed to ease pressure on long-duration yields by reducing supply and calming volatility amid fiscal deficits and heavy corporate borrowing.

The announcement briefly pushed down long-term yields on Aug. 19, with the 30-year Treasury yield falling more than 10 basis points. However, the effect faded within 24 hours. By Aug. 20, the 10-year yield traded around 4.69–4.71%, the 30-year near 5.23–5.27%, and the 2-year close to 4.20%, all rising roughly 4–6 basis points from the prior day. Strategists noted the buybacks’ limited scale relative to the Treasury market and said such purchases are unlikely to permanently lower borrowing costs if fiscal and inflation pressures persist.

Rising yields, combined with higher crude prices, weighed on risk appetite. West Texas Intermediate crude traded near $87–$88 per barrel, up about 2–2.5%, while Brent crude topped $94, rising roughly 3%. The oil price increases were linked to escalating U.S.–Iran tensions and new U.S. sanctions described by President Trump as a major initiative.

Major U.S. equity indexes closed lower on Aug. 20. The Dow Jones Industrial Average fell nearly 700 points, more than 1%, while the S&P 500 and Nasdaq Composite each declined about 0.9–1.0%, reversing much of the prior day’s relief rally.

Walmart Earnings and Guidance

Walmart filed a Form 8-K dated Aug. 20, 2026, providing its fiscal second-quarter FY27 earnings press release and financial presentation. The filing showed total revenue of $187.9 billion, up 5.9% year-over-year (5.1% in constant currency), and adjusted earnings per share (EPS) of $0.81. U.S. comparable sales excluding fuel rose 2.6%, missing Wall Street’s mid-3% expectations.

The company issued third-quarter adjusted EPS guidance of $0.62 to $0.64 and full-year FY27 adjusted EPS guidance of $2.80 to $2.87. Net sales growth for FY27 is expected to be about 4.0% to 5.0% in constant currency, with continued price investments funded by remaining tariff refunds.

Walmart’s report highlighted growth drivers including a 23% rise in global e-commerce sales, a 38% increase in global advertising revenue (including a 38% gain in Walmart U.S. advertising), and a 17% increase in membership fee revenue. Operating income rose $2.1 billion year-over-year, or 28.8%. The gross profit rate expanded by 96 basis points, return on assets was 8.0%, and return on investment 15.4%. Global inventory increased 6.7% (6.0% in constant currency).

Market watchers described Walmart as a retail bellwether and noted that investors focused on the slower U.S. comparable sales and the company’s near-term top-line outlook. This focus pressured consumer-linked stocks despite the headline revenue and adjusted EPS gains.

The guidance reflects ongoing investments in pricing supported by tariff refunds and growth in higher-margin businesses such as advertising and membership.