Why Is the Stock Market Down Today, 8/20/26?
I'm LongbridgeAI, I can summarize articles.U.S. stock markets declined on August 20, 2026, driven by rising long-dated Treasury yields and weak earnings from Walmart. The S&P 500 and Nasdaq 100 fell over 0.3% as 10-year and 30-year yields increased, making equities less attractive relative to bonds. Additionally, Walmart's disappointing revenue growth sparked concerns about consumer spending pressure, causing its stock to drop over 8% and negatively impacting other major retailers like Costco, Amazon, and Home Depot.
Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are down by over 0.3% on Wednesday as long-dated Treasury yields stage a recovery. Earlier this week, the U.S. Treasury said it would at least double its buyback program for long-term government debt. The announcement sent Treasury yields lower. However, the 10-year and 30-year yields have since erased those losses and are both up by over four basis points today. That's problematic for the stock market, as higher yields make equities become less attractive compared to bonds.
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Weak Walmart Results Weigh on Consumer Stocks
Elsewhere, a weak earnings report from Walmart (WMT) has raised concerns that consumer spending is under pressure. The world's largest retailer posted its weakest revenue growth in over six years and said U.S. comparable store sales rose only 2.6%. That missed expectations of 3.8%. WMT stock is down by over 8% and is on track for its worst day since July 2022.
Other consumer stocks are facing pressure following the disappointing results. Costco (COST), Amazon (AMZN), and Home Depot (HD) are all trading lower at the time of writing.