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Update: Equities Fall Intraday as Yields Rise Despite Treasury Buyback Plan

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Update: Equities Fall Intraday as Yields Rise Despite Treasury Buyback Plan

(Updates with latest market prices and developments.)

US benchmark equity indexes fell intraday as bond yields rose, a day after the Treasury Department announced an accelerated debt buyback program.

The Nasdaq Composite and the Dow Jones Industrial Average were down 0.9% each after midday Thursday, at 26,104.1 and 52,973.6, respectively. The S&P 500 lost 0.5% to 7,668.6. The indexes ended Wednesday in the green following a three-day slump.

Most sectors were in the red intraday Thursday, led by consumer discretionary, while energy gained the most.

US Treasury yields were higher, with the 10-year yield up 4.9 basis points at 4.7% and the two-year yield rising 1.5 basis points to 4.19%. The 30-year rate advanced 4.7 basis points to 5.24%.

The Treasury Department said Wednesday it will at least double the size of its buybacks for longer-dated Treasuries, to $4 billion per operation. The announcement eased pressure on long-term yields on Wednesday.

Treasury Secretary Scott Bessent told CNBC on Thursday that the buybacks could be worth more than $4 billion per issue.

"The $4 billion size of the buybacks is vanishingly small relative to the size of the US treasury market but is a loud symbolic signal that the Treasury does not want higher yields," Saxo Bank said in a report Thursday. "Shaping the yield curve and buying treasuries is normally a policy area for the (Federal Reserve), so it sets up an interesting tension with Fed Chair Kevin Warsh, who will speak at next week's Fed symposium at Jackson Hole, Wyoming."

US government debt surpassed $40 trillion for the first time, multiple outlets reported Wednesday, citing Treasury Department data.

West Texas Intermediate crude oil climbed 2.3% to $87.80 a barrel, while Brent rose 1.8% to $93.31. The benchmarks were on track for their fifth straight day of gains.

US President Donald Trump on Wednesday threatened "economic warfare" against Iran, announcing economic consequences for countries that seek to provide any form of support to Tehran.

A 60-day ceasefire between the two countries expired Monday.

In corporate news, Walmart (WMT) shares fell 8.7% intraday, the worst performer on the Dow and the second-biggest fall on the S&P 500, after the retail giant issued third-quarter earnings guidance below analysts' expectations.

Deere's (DE) shares jumped 8%, the biggest gain on the S&P 500, after the company raised the lower ends of its net income and cash flow guidance ranges, citing a strong fourth-quarter order book.

Nordson (NDSN) climbed 7.1%, the third-best performer on the S&P 500, after lifting its fiscal 2026 outlook.

Shares of Moderna (MRNA) slid 25%, the steepest drop on the S&P 500, following a 177% jump at the close of the previous trading session. The drugmaker and Merck (MRK) announced positive topline results from a late-stage trial of an experimental skin cancer treatment on Wednesday.

Spot gold ticked down 0.2% to $4,508.62 per troy ounce, while silver rose 3.7% to $69.04 per ounce.

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