NEW YORK, Aug. 20 (Xinhua) -- U.S. stocks ended lower on Thursday as U.S. bond yields rebounded and crude oil prices pushed higher amid ongoing geopolitical tensions in the Middle East.
The Dow Jones Industrial Average fell 703.84 points, or 1.32 percent, to 52,759.21. The S&P 500 sank 66.82 points, or 0.87 percent, to 7,641.16. The Nasdaq Composite Index shed 263.92 points, or 1 percent, to 26,067.17.
Nine of the 11 primary S&P 500 sectors ended in the red, with consumer staples and healthcare leading the laggards by dropping 1.93 percent and 1.89 percent, respectively. Energy and real estate were the only gainers, rising 0.38 percent and 0.15 percent, respectively.
Bond market dynamics remained central to market sentiment following recent moves by U.S. Treasury Secretary Scott Bessent to rein in long-dated yields, an intervention that analysts noted could complicate monetary policy under Federal Reserve Chairman Kevin Warsh. U.S. Treasury yields climbed again on Thursday, as the yield on the benchmark 10-year Treasury note rising 4 basis points to 4.69 percent, while the 30-year bond yield increased by 4 basis points to 5.24 percent.
Market participants also turned increased attention toward U.S. fiscal conditions as the national debt surpassed the 40-trillion-U.S.-dollar threshold, having more than doubled in less than a decade. While Treasury officials downplayed the milestone by emphasizing long-term economic expansion, some market strategists warned of mounting structural debt pressures.
"The 40 trillion is a big number. It is smaller when we look at the publicly traded amount because our Social Security funds and other government entities hold a substantial amount. And what we're going to do, we're going to have to grow our way out of this," Bessent said.
In energy markets, crude oil prices advanced as unresolved conflicts surrounding the Strait of Hormuz and the military standoff with Iran sustained a geopolitical risk premium. West Texas Intermediate crude for September delivery added 2 U.S. dollars, or 2.33 percent, to settle at 87.83 dollars a barrel on the New York Mercantile Exchange. Concurrently, Brent crude for October delivery increased by 2.16 dollars, or 2.36 percent, to finish at 93.78 dollars a barrel on the London ICE Futures Exchange.
In corporate developments, Walmart sank 9.15 percent after issuing softer-than-expected third-quarter guidance. Agricultural machinery manufacturer Deere & Co. jumped almost 7 percent after reporting quarterly results, while Advance Auto Parts tumbled 24.55 percent and NetEase shed nearly 6 percent. ■
