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August 20, 2026 - 14:39
5 minutes
(Bloomberg) — Long-dated Treasuries gave up their gains and US stock futures fell as rising oil prices put inflation risks back on investors’ radar. Walmart Inc. tumbled 6%.S&P 500 futures retreated 0.6%. Treasuries resumed declines, with the 30-year yield up seven basis points to 5.26%. Walmart slumped in premarket trading on disappointing earnings, stoking concerns about the health of US consumers and dragging retailers lower. The dollar was little changed. Bitcoin traded above $70,000 for the first time since June. Gold dipped below $4,500 an ounce.Brent rose for a fifth straight day, topping $94 a barrel. President Donald Trump announced a package of measures intended to smother Iran’s economy, dimming prospects for both an imminent breakthrough in the conflict between the US and Tehran and a normalization of crude flows from the Middle East.Traders are taking stock after Treasury Secretary Scott Bessent announced a surprise increase in long-term bond buybacks to stem a rise in yields that had taken them to a near two-decade high. Analysts have warned the plan may be a short-term fix given concerns about large fiscal deficits and oil-driven inflation.“If there’s a structural reason why bond yields are drifting higher, a bit of short-term intervention buys you a little bit of time, but doesn’t necessarily change the longer-term trajectory,” said Graham Secker, equity strategy head at Pictet Wealth Management.In Europe, the Stoxx 600 extended its longest losing streak of 2026. Government bonds fell. The pound headed for its highest level against the dollar since February. European natural gas surged to a five-month high.Elevated yields have kept equity prices in check, with the S&P 500 down since Monday after hitting a record high last week. Chipmakers have been under pressure in recent days, paring this month’s rebound after a volatile July.Initial jobless claims for the week through Aug. 15 was slightly lower than expected. With little on the calendar for the rest of the week and holiday-thinned volumes, traders are looking to Nvidia Corp.’s earnings next week for a fresh read on the state of the AI buildout.“People are waiting for either new information or the market signaling something,” Secker said. “When you see the Korean market going up 5% and then down 5% the next day, particularly for the hedge fund community that level of volatility is not encouraging confidence.”Traders will also be keen to hear remarks from Federal Reserve Chairman Kevin Warsh at the annual Jackson Hole symposium next week. His lack of guidance on when or whether the central bank will adjust rates has added to uncertainty over the policy outlook.What Bloomberg’s Strategists Say…“Fed Chairman Warsh has argued that rising long yields have been doing some of the Fed’s tightening for it. If the Treasury now suppresses those yields and loosens financial conditions, the Fed may have to compensate through higher policy rates. If they don’t, doubts over inflation fighting credibility may push up long-end yields anyway.”Corporate News:Walmart Inc.’s quarterly sales fell short of expectations, a rare miss that’s likely to stoke concern about the leading big-box retailer decelerating alongside a slow-growing US economy. Hudson River Trading signed a multiyear deal with CoreWeave Inc. to build new trading research and models using the tech company’s artificial intelligence computing services. Meta Platforms Inc. has become one of Microsoft Corp.’s biggest AI customers, underscoring how demand for the emerging technology remains concentrated in the tech industry. Alibaba Group Holding Ltd.’s profit plunged more than 75% after China’s e-commerce leader ratcheted up AI spending while grappling with a broad Chinese consumption slowdown. Deere & Co. narrowed its annual profit outlook as a stabilizing agriculture sector points to a more pronounced rebound next year for farm machinery. Some of the main moves in markets:StocksS&P 500 futures fell 0.6% as of 8:38 a.m. New York time Nasdaq 100 futures fell 0.8% Futures on the Dow Jones Industrial Average fell 0.7% The Stoxx Europe 600 fell 0.5% The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1682 The British pound rose 0.2% to $1.3630 The Japanese yen fell 0.4% to 158.75 per dollar CryptocurrenciesBitcoin rose 3.9% to $71,729.4 Ether rose 2.6% to $2,276.01 BondsThe yield on 10-year Treasuries advanced six basis points to 4.70% Germany’s 10-year yield advanced one basis point to 3.27% Britain’s 10-year yield advanced four basis points to 5.08% CommoditiesWest Texas Intermediate crude rose 3.6% to $88.88 a barrel Spot gold fell 1.3% to $4,458.58 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Neil Campling.©2026 Bloomberg L.P.
