Dow futures drop 300 points as Treasury yields reverse Bessent-driven decline, Walmart tumbles: Live updates

[Zakana]

Stock futures fell on Thursday as Treasury yields reversed course from the decline seen in the prior trading day following the Treasury Department'sdebt buyback announcement.

Dow Jones Industrial Average futuresshed 357 points, or 0.7%.S&P 500 futureslost 0.4%, whileNasdaq-100 futuresslid 0.7%.

Bond yields advanced on Thursday, climbing back from Wednesday's slide after the Treasury Department said it will at least double repurchases of 10-, 20- and 30-year debt in the next few months. That comes after the30-year Treasurybond yield spiked to its highest level in nearly 20 years earlier this week.

The yield on the10-yearyield gained more than 5 basis points to 4.704%, while the30-yearyield added 6 basis points to 5.254%.

Also weighing on equities, oil pricesrose againamid increasing tensions between Iran and the U.S. PresidentDonald Trumpsaid in a Truth Social postlate Wednesday that the U.S. would begin "most crushing economic operation ever taken against any country" against Iran. "This will be Economic Warfare and Isolation on an unprecedented scale," he wrote.

West Texas Intermediate crude futuresrose 3% to above $88 per barrel, while global benchmark Brent crude futures moved up 3% to above $94 a barrel.

A pullback inWalmartshares also hit the broader market. The retail giant dropped more than 6% after its U.S. comparable sales missed analyst expectations, as did its adjusted earnings forecast for both the third quarter and the full year.

Wall Street is coming off a winning session, with the S&P 500 snapping a three-session losing streak, as yields on longer-dated U.S. Treasurys pulled back from multi-year highs after the government unveiled a plan to ease pressure from a recent bond market rout.

Michael Schumacher, former head of macro at Wells Fargo, doesn't think bond market respite will last, however.

"I'm still negative. I think long-term rates go up for a few reasons. In the U.S. case in particular, there's just a huge budget deficit. Not much sign that's going to improve. On top of that, you've got defense spending going up," he told CNBC in an interview. "I think that was the case really before the conflict in Iran, and that's intensified."

— CNBC's Toby Burns contributed reporting.

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Walmart's shares down after comparable sales, guidance falls short of expectations

Walmartshares dropped more than 5% in premarket trading after the retail giant's U.S. comparable sales and third-quarter adjusted EPS guidance fell short of FactSet consensus.

For the second quarter, U.S. comparable sales rose 2.6%, below the gain of 3.5% that analysts polled by FactSet had expected. Walmart's third-quarter guidance for adjusted earnings per share was also between $0.62 and $0.64, while analysts had anticipated $0.68.

"Our business model is only getting stronger and more durable, and we're pleased to raise our guidance for the year," said John David Rainey, the company's chief financial officer.

For the third quarter, the company expects net sales to increase 3% to 3.75% and operating income to increase 2% to 4%.

Walmart's guidance for the fiscal year also fell below FactSet's earnings estimate, despite raising its own forecast. The company now expects adjusted EPS of $2.80 to $2.87, up from its previous guidance of $2.75 to $2.85. FactSet consensus was $2.90.

Walmart's second-quarter report also beat FactSet consensus on revenue.

Here's the latest ahead of the opening bell on Wall Street

Bond yields edged higheras investors digest the Treasury Department's plan to dramatically ramp up government debt repurchases in a bid to shore up longer-dated debt.

The yield on30-year U.S. Treasurys— the primary focus of the accelerated buyback — was last seen up 2 basis points at 5.2224%.

Yields on10-year U.S. Treasurys— the main benchmark for mortgages, auto loans and credit card debt — moved 1 basis point higher to 4.6723%. The yield on the2-year Treasury note, which more closely follows short-term Federal Reserve rate decisions, was last seen holding steady at 4.1748%.

Oil rises more than 2% as Trump sharpens Iran rhetoric

Oil prices rose after the U.S.President Donald Trumpvowed"economic warfare"on Iran and financial penalties for its supporters, as the United Arab Emirates said it was suspending trade with Tehran.

Brent crude futures— the international price benchmark — were last seen up 2.19%, trading at $93.61 per barrel as of 4:46 a.m. ET. U.S.West Texas Intermediate futuresfor September delivery were more than 2% higher at $87.56 in morning trade.

Danish biotech Novonesis shares pop 8% after raising outlook, €1 billion buyback

Shares in Novonesis rose 8% in early trade after the Danish biotech firm raised its full-year guidance and announced a €1 billion share buyback program.