Walmart Earnings Test Consumer Strength 20/08/2026
Market Wrap
US stocks snapped a three-day losing streak on Wednesday as a sharp decline in longer-term Treasury yields eased pressure on equities, though the major indexes finished well off their session highs.
The S&P 500 gained 0.2% to 7,707.98, while the Nasdaq Composite advanced 0.2% to 26,331.09. The Dow Jones Industrial Average added 120 points, or 0.2%, to 53,463.05.
The initial rally followed the Treasury Department’s decision to significantly increase buybacks of longer-dated government debt. The announcement sent the 30-year yield down more than 10 basis points to 5.18% after hitting a 19-year high above 5.33% a day earlier. The 10-year yield fell more than 6 basis points to 4.64%.
Rate-sensitive stocks benefited, with Lowe’s (LOW) and Home Depot (HD) gaining around 2%. Moderna (MRNA) was the standout performer, surging 177% after an experimental skin-cancer vaccine developed with Merck (MRK) delivered positive late-stage trial results. Merck jumped more than 12%.
Marvell Technology (MRVL) rallied nearly 10% after announcing an AI-chip agreement with Google and granting Alphabet (GOOGL) a warrant to purchase as much as $12.2 billion of Marvell stock.
The broader technology sector was more mixed. Broadcom (AVGO) and Advanced Micro Devices (AMD) fell roughly 4% following reports that OpenAI’s second-quarter results disappointed some investors as losses continued to rise despite revenue growth.
Attention now turns to Thursday’s weekly jobless claims, with economists expecting around 210,000 new filings. Walmart (WMT) will also be in focus when the retailer reports fiscal second-quarter results before the opening bell.
Fed Minutes Point to Growing Support for Tighter Policy
Federal Reserve officials showed increasing support for higher interest rates at their July meeting, underscoring persistent concern that inflation may prove more difficult to contain.
The minutes showed that “several” policymakers favored raising rates, up from only a “few” at the June meeting. The Fed ultimately voted to keep its benchmark rate unchanged at 3.5%-3.75%, with three officials dissenting in favor of a quarter-point increase.
The debate centered on inflation. While most officials expect price pressures to ease through the remainder of the year, many warned that inflation could remain persistently elevated. Several policymakers also questioned whether current financial conditions are restrictive enough to return inflation sustainably to the Fed’s 2% target.
Officials favoring tighter policy pointed to broad-based price pressures, elevated underlying inflation and an increase in inflation expectations following renewed conflict with Iran. Many participants indicated that additional rate hikes would likely be necessary if inflation fails to cool.
Those supporting unchanged rates argued that waiting until the September meeting would allow policymakers to assess additional employment and inflation data before committing to further tightening.
Markets remain less hawkish than they were immediately after the July decision. The implied probability of a September rate increase has fallen to around 56%, from 82%, following softer inflation readings released since the meeting.
Stocks on the Move
- Estee Lauder (EL): Shares surged more than 16% after fiscal fourth-quarter adjusted earnings and revenue beat expectations. The company also issued fiscal 2027 earnings guidance broadly in line with Wall Street forecasts.
- Coinbase (COIN): Shares jumped 11% as bitcoin climbed more than 5% to around $68,000. Robinhood (HOOD) gained more than 6%, while crypto miners Riot Platforms (RIOT) and Mara Holdings (MARA) rose 3% and 7%, respectively.
- VanEck Gold Miners ETF (GDX): The ETF rallied 9%, putting it on track for its strongest session since November 2022. Coeur Mining (CDE) and Hecla Mining (HL) led the advance with gains of more than 13% each.
- Real Estate and Homebuilders — CoStar (CSGP), Alexandria Real Estate Equities (ARE), Toll Brothers (TOL), D.R. Horton (DHI): Shares moved sharply higher after the Treasury’s buyback announcement pushed long-term yields lower. CoStar and Alexandria gained more than 6%, Toll Brothers rose 7.1% and D.R. Horton climbed 5.4%.
Watchlist: WMT, MRVL, GOOGL, SNDK, MU, COIN, BABA, DE, FUTU, AAP, BILL, BULL
Key Economic Events Today
Economic Data (EST)
- 8:30 AM — USD Philly Fed Manufacturing Index
- 8:30 AM — USD Unemployment Claims
- 10:00 AM — CB Leading Index
Earnings
Before Market Open: Walmart (WMT), Alibaba Group (BABA), Deere and Co. (DE), NetEase (NTES), FUTU Holdings (FUTU), Advance Auto Parts (AAP)
After Market Close: Ross Stores (ROST), OSI Systems (OSIS)
