Walmart drops 9%, Dow drops 400 points. Without AI spending, we’d already be in a very deep recession?

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Dow drops 400 points, hurt by rising Treasury yields and a decline in Walmart: Live updates

A pullback in Walmart shares hit the broader market as well. The retail giant dropped 9% after its U.S. comparable sales missed analyst expectations, as did its adjusted earnings forecast for both the third quarter and 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.”


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