S&P 500 Slips as Walmart Drops, Treasury Yields Rise, Crypto Stocks Diverge
S&P 500 fell on Thursday as Treasury yields rose, renewing pressure on equities, while Walmart’s sharp post-earnings drop weighed on the Dow. By around 10 a.m. ET, the Dow was down about 0.6%, the S&P 500 slipped about 0.2%, and the Nasdaq declined roughly 0.3%—with investors reassessing Fed rate risks.
Walmart shares sank more than 8% after U.S. comparable sales rose only 2.6%, below analysts’ 3.8% expectation. Revenue increased to about $187.9 billion, and adjusted earnings beat estimates, but slower store sales and cautious guidance dominated. Higher gasoline prices also squeezed lower-income shoppers and discretionary spending, raising questions on how long consumers can absorb elevated living costs.
Bond-market pressure remained central. The 10-year Treasury yield rose to around 4.70%, while the 30-year moved to roughly 5.24%, reversing part of Wednesday’s easing. Fresh data supported the inflation sensitivity: initial jobless claims fell to 206,000, and the Philadelphia Fed manufacturing index jumped to 47.4 from 41.4.
Fed minutes released Wednesday suggested inflation remains a key concern, with several policymakers prepared to support a 25 bps hike at the July meeting.
In crypto-linked equities, the sell-off showed divergence: Strategy gained over 6% and Coinbase rose more than 5% after Trump urged Congress to advance crypto legislation. Traders watching S&P 500 will likely focus on whether long-end yields stabilize for any intraday rebound, while crypto-related names may decouple further if policy headlines dominate.
Neutral
This is a mixed macro-to-crypto read. The primary driver is risk-asset pressure: rising Treasury yields (10Y ~4.70%, 30Y ~5.24%) and rate-risk repricing weighed on the S&P 500 and tech, with Walmart’s consumer-softness signal adding to fears of weaker discretionary demand. Historically, when long-end yields back up, equities tend to struggle and crypto often trades with risk appetite—at least in the short run.
However, the article highlights a key divergence: crypto-linked equities rose on Trump’s push for crypto legislation, even as the broader market pulled back. That mirrors prior periods where policy headlines (regulation/legislation) can temporarily decouple crypto sentiment from traditional macro variables.
Short-term: If yields keep climbing, the S&P 500 may remain capped, limiting broad risk rallies; crypto-linked names could still outperform if policy-driven momentum holds. Long-term: persistent higher yields would generally be a headwind for growth assets, but stable or improving bond conditions would remove a major brake—potentially restoring correlation. Net effect: neutral for overall crypto-market stability, because macro pressure is real, but policy-driven crypto narratives are currently offsetting it.