US Markets Plunge as National Debt Hits $40 Trillion

US stock markets fell sharply on Thursday, with the Dow Jones Industrial Average dropping approximately 700 points and the S&P 500 falling 0.9%. The downturn was driven by high inflation concerns and the US national debt reaching a record $40 trillion. Brent crude prices rose 2.4% to $93.78 amid Persian Gulf uncertainty and threats from Donald Trump to launch "the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY" against Iran.

In the bond market, 10-year Treasury yields climbed to 4.70%, erasing gains from a Wednesday announcement by the United States Department of the Treasury to double its bond buybacks to $4 billion. Treasury Secretary Scott Bessent suggested the buyback amount could increase, stating the goal was to get investors to focus on fundamentals rather than headlines during a thin market.

Corporate performance added to the volatility. Walmart experienced its worst loss in four years, falling 9.2% on slowing revenue growth and a weak profit forecast. Advance Auto Parts shares tumbled 24.5% after reporting weaker-than-expected revenue. CEO Shane O’Kelly attributed the decline to tighter household budgets that constrained spending more than anticipated during the final four weeks of the quarter. In contrast, Deere rose 6.9% following strong quarterly results.