U.S. stock market averages traded lower Thursday, pressured by rising government bond yields, climbing oil prices and weak corporate earnings. The Dow Jones Industrial Average closed down 0.6 percent at 53,125. The S&P 500 declined 0.2 percent to 7,692, and the Nasdaq Composite dropped 0.5 percent to 26,187.
Yields climbed across the curve Thursday despite the Treasury Department's announcement Wednesday that it would double its buyback program for long-term government debt. The buyback, typically intended to support bond prices and lower yields, proved short-lived in its effect.
Oil prices resumed their advance, compounding inflationary concerns. Walmart Inc. cited higher fuel prices as a headwind in its earnings report, which disappointed market expectations. The retailer also issued a weaker-than-expected profit forecast, weighing on its shares and those of retail peers.
The Dow fell roughly 340 to 416 points during the session, with Walmart identified as a significant drag on the index. The S&P 500 had ended a three-session losing streak Wednesday before Thursday's reversal.
Jobless claims fell, signaling continued labor market strength. That data point, while positive for the economy, reinforces expectations for sustained inflation and potentially higher interest rates.
Traders focused on geopolitical developments and signals on progress toward a Middle East peace deal, which could influence global oil supply and energy prices.
