TL;DR

Stocks drop on surging Treasury yields; House votes on Trump tax bill; Nike, Walmart cut costs, raise prices.

Highlights

• Dow fell 817 points (-1.9%), S&P 500 -1.6%, Nasdaq -1.4% as Treasury yields surged post-weak 20-year auction; VIX up 10%1.
• 20-year Treasury note auction saw poor demand, yield hit 5.047%; Moody’s recent U.S. credit downgrade fueled debt concerns1.
• U.S. House to vote tonight on Trump’s tax bill, with urgency due to the debt ceiling deadline3.
• Nike to raise prices on most adult products due to tariffs; resumes Amazon sales; industry-wide price hikes expected6.
• Walmart to cut 1,500 corporate jobs to reduce costs and streamline operations7.
• AT&T to acquire Lumen ’s consumer fiber business for $5.75B, adding 1M subscribers; Lumen to focus on enterprise, cut debt8.
• Snowflake beat Q1 estimates, raised FY26 outlook; shares rose ~6% after hours9.
• Zoom topped Q1 estimates, raised FY26 guidance; shares up ~2.2% post-market10.
• Nvidia partnered with Navitas Semiconductor on new data center power tech; Navitas shares surged 120% after hours11.
• Trump administration considering public offering for Fannie Mae and Freddie Mac5.
• U.S. weighs Global Magnitsky sanctions on Brazil’s Supreme Court Justice, risking diplomatic tension4.
• Israel prepares for possible strike on Iran’s nuclear facilities as U.S.-Iran talks stall2.

Commentary

U.S. equities sold off sharply, led by a surge in Treasury yields after a weak 20-year note auction and Moody’s recent downgrade of the U.S. credit rating1. The spike in yields and a 10% jump in the VIX reflect growing investor concern about U.S. fiscal stability, especially with the House racing to pass Trump’s tax bill ahead of the debt ceiling deadline13. Fixed income volatility is likely to persist, and traders should watch for further moves in rates and any developments out of Washington that could impact near-term market direction.

Consumer-facing companies remain under pressure from tariffs and cost inflation. Nike ’s price hikes on adult products and Walmart ’s corporate job cuts underscore the ongoing margin squeeze in retail67. These moves, combined with broader industry price increases, may further weigh on consumer discretionary spending and could impact inflation readings in coming months6.

In corporate news, AT&T ’s $5.75B acquisition of Lumen ’s consumer fiber business expands its broadband footprint and signals continued telecom consolidation8. Tech earnings were a bright spot: Snowflake and Zoom both beat estimates and raised guidance, boosting shares after hours910. Nvidia’s partnership with Navitas Semiconductor on next-gen data center power tech drove a 120% surge in Navitas shares, highlighting continued investor interest in AI and infrastructure plays11.

Geopolitical risk remains elevated. Israel’s preparations for a potential strike on Iran’s nuclear facilities, as U.S.-Iran talks falter, could increase volatility in energy markets and drive safe-haven flows2. Meanwhile, the U.S. weighing sanctions on a Brazilian Supreme Court justice introduces fresh uncertainty for emerging markets4.

Traders should remain alert to overnight developments on the U.S. tax bill, debt ceiling negotiations, and Middle East tensions, as these will likely drive risk sentiment into the next session.