Treasury Buyback Fails, Markets Tank on Iran & Walmart Crash

U.S. stock markets tumbled sharply on August 20, with the Dow Jones Industrial Average dropping 703.84 points (1.32%) to close at 52,759.21, as a renewed surge in long-term Treasury yields undermined investor confidence following the Treasury Department's expanded bond buyback program . The S&P 500 fell 0.87% to 7,641.16, while the Nasdaq Composite declined 1.00% to 26,067.17 . Treasury Secretary Scott Bessent's CNBC defense of the buyback operation failed to reassure markets, as the 20-year and 30-year yields rebounded more than 5 basis points . Walmart shares plunged 9.15% after the retailer's second-quarter same-store sales rose just 2.6%, missing the 3.8% forecast, signaling cooling consumer demand . Escalating geopolitical tensions, with the U.S. preparing massive sanctions against Iran, pushed WTI crude oil up 2% on the day and over 7% for the week, with Brent crude reaching $93.55 per barrel . The CBOE Volatility Index (VIX) spiked 7.52% to 16.01, reflecting heightened market fear, while St. Louis Fed President Alberto Musalem reiterated his preference for a July rate hike, warning that without one, inflation risks staying above the 2% target .