U.S. Stocks Plunge & Debt Hits $40 Trillion in Bond Market Turmoil

U.S. stocks fell sharply on Thursday as Treasury yields rebounded, oil prices climbed and investors reassessed the outlook for inflation and federal borrowing. The Dow Jones Industrial Average dropped 703.84 points, or 1.32%, while the S&P 500 fell 0.87% and the Nasdaq Composite lost 1%. The decline followed a brief rally after Treasury Secretary Scott Bessent announced larger purchases of longer-dated Treasury securities. Treasury said the buyback operations will rise to at least $4 billion per operation beginning Sept. 9. The U.S. national debt also surpassed $40 trillion, according to Treasury data, underscoring the scale of federal borrowing. Bessent said the milestone itself was not decisive and argued the economy could grow faster than the debt. Meanwhile, Brent crude settled at $93.78 as the Iran conflict disrupted energy markets. Walmart shares fell 9.2% after weaker comparable-sales growth and cautious guidance intensified concerns about consumers and broader corporate earnings expectations weakened.