The Dow Jones Industrial Average experienced a significant drop of 703 points, closing down 1.3% at 52,759.21 on Thursday, August 20, 2026. This sharp decline was largely attributed to a spike in Treasury yields and a substantial slump in Walmart's stock price. The Nasdaq Composite also saw a notable decrease, falling 1.0% to 26,067.17, while the S&P 500 closed down 0.9% at 7,641.16.
Walmart's shares were the heaviest drag on the Dow, plunging 9.2% after the retail giant reported second-quarter U. S. comparable sales growth of just 2.6%. This figure fell short of analyst expectations and marked the slowest pace of growth in over six years. Despite reporting better-than-expected earnings and raising its full-year outlook, the market focused on the deceleration in sales and offered a soft outlook for the upcoming quarter.
The broader market sentiment was also dampened by rising Treasury yields. The 10-year Treasury yield climbed to 4.702%, and the 30-year Treasury yield rose to 5.249%, reversing some of the relief seen in the previous session. This upward pressure on yields was driven by ongoing concerns about government debt, inflation, and the Federal Reserve's commitment to controlling price pressures. Treasury Secretary Scott Bessent's attempts to calm the bond market through increased buybacks had a temporary effect, but underlying investor anxieties persist. The escalating geopolitical tensions with Iran also added to market uncertainty, influencing oil prices and overall investor confidence.
Other notable market movements included a significant drop in oil prices, with Brent crude climbing to $93.78 per barrel. Companies sensitive to energy costs, such as Norwegian Cruise Line Holdings and United Airlines, saw their stock prices fall. Conversely, Deere & Company reported stronger-than-expected profits, providing some support to the market.
