Rising Treasury Yields Pressure US Stocks

US equities fell to two-week lows as renewed pressure in the Treasury market weighed on risk appetite. The 10-year Treasury yield traded near 4.70%, while the 30-year yield reached 5.244%, increasing concerns over borrowing costs and equity valuations.

Additional pressure came from higher oil prices and renewed US-Iran tensions. Walmart also weighed on sentiment, with shares falling roughly 9% after quarterly comparable-store sales missed expectations.

Treasury Buybacks Provide Relief

Markets recovered on Wednesday after US Treasury officials announced plans to increase buybacks of longer-dated government bonds to help ease borrowing costs. The announcement triggered several notable market moves:

The 30-year Treasury yield fell 10 basis points to 5.18%.
The US dollar dropped to a three-month low.
The Nasdaq Composite gained around 0.2%, ending a three-session losing streak.

Moderna was another major mover, surging 176% following positive results from its advanced-stage melanoma vaccine developed with Merck.

Fed Keeps Tightening Option Open

The July FOMC minutes showed that many policymakers believed additional monetary tightening could become necessary if inflation failed to moderate, keeping interest-rate risks in focus.

US Treasury Secretary Scott Bessent said officials would continue monitoring market conditions before deciding whether further action was required. He indicated that the bond buyback program could exceed $4 billion, adding that the initiative was partly intended to send a signal to investors that current yields do not reflect underlying economic fundamentals.

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