TLDR
- US stock futures rose slightly Friday after Wall Street’s steepest drop in three weeks
- The 10-year Treasury yield climbed to 4.70% and the 30-year hit 5.25%, pressuring tech stocks
- Walmart shares fell 9.2% after weak sales and a warning about consumer spending
- Brent crude stayed above $93 a barrel, keeping inflation concerns alive
- Investors are watching Jackson Hole next week and Nvidia earnings for direction
US stock futures edged higher on Friday after a rough Thursday session that saw the Dow Jones Industrial Average, S&P 500, and Nasdaq all close in the red.
Futures on the Dow and S&P 500 rose about 0.2%, while Nasdaq-100 contracts gained around 0.4%.
Thursday’s session was Wall Street’s worst in three weeks. The Dow dropped 1.3%, the S&P 500 lost 0.9%, and the Nasdaq fell 1%.
Treasury Yields Stay Elevated
The main pressure point continues to be Treasury yields. The 10-year yield climbed to around 4.70%, and the 30-year reached 5.25%.
BREAKING: US Treasury Secretary Bessent says Treasury buybacks announced yesterday could now MORE than double, exceeding $4 billion per operation.
Bessent said buybacks will increase “by at least double,” adding, “we have a big toolkit, so we’ll see.”
This comes just hours… https://t.co/SLNs0MfTgD
— The Kobeissi Letter (@KobeissiLetter) August 20, 2026
Higher yields make borrowing more expensive and reduce the appeal of growth stocks. Tech names felt the most pain during Thursday’s session.
Treasury Secretary Scott Bessent announced plans to expand bond buybacks beyond $4 billion per issue. He said the goal was to signal that yields do not reflect the true state of the economy.
Markets weren’t convinced. Yields quickly snapped back to higher levels, and traders saw the move as a limited fix rather than a solution.
Walmart Drags on Consumer Stocks
Walmart posted weaker-than-expected quarterly sales growth and warned that higher fuel costs are putting pressure on household budgets.
Its shares fell 9.2% on Thursday, dragging down other consumer names. Amazon, Home Depot, and American Express all declined on the day.
Deere and Company was one of the few bright spots. Its shares rose 7% after the company raised the lower end of its full-year profit outlook.
Oil added to the uncertainty. Brent crude stayed above $93 a barrel, driven by ongoing tensions between the United States and Iran.
President Trump this week threatened severe economic consequences for any country that trades with Iran, putting a spotlight on China’s oil imports from the Gulf region.
Treasury Secretary Bessent is expected to hold a press conference Monday to detail the US plan to economically isolate Iran.
Investors are also watching the Federal Reserve’s Jackson Hole Symposium, scheduled for August 27 to 29.
Nvidia’s second quarter earnings are due next week and will be closely watched given the pressure on AI and tech stocks this week.
Before that, S&P Global’s Purchasing Managers’ Index will give markets a read on manufacturing and services activity.
BJ’s Wholesale Club is also due to report quarterly results, which could either confirm or push back on the signs of consumer weakness seen this week.
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