U.S. markets attempt rebound as Treasury yields climb

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US markets rebound and yields

Highlights

S&P 500 is up 0.35%, Nasdaq Composite gains 0.51%, and Dow Jones rises 0.52% in early trading despite rising Treasury yields.
Walmart, Target, Home Depot, and Lowe’s report cautious consumer spending, while TJX, Ross Stores, and BJ’s see increased store traffic ahead of the holiday season.
Bitcoin is up 20% for the week, boosting Strategy by 7.3% and Coinbase Global by 5% in early trading, with Nvidia earnings in focus next Wednesday.

Early trading rebound amid rate pressure

Cboe Global Markets says major U.S. indexes are moving higher in early trading after Thursday’s decline, with the S&P 500 up 0.35%, the Nasdaq Composite gaining 0.51% and the Dow Jones Industrial Average advancing 0.52%. The attempted rebound follows a session in which investors reacted negatively to the Treasury Department’s buyback program, contributing to a bond selloff and weaker stocks.

By the close of Thursday’s session, the Dow had fallen 1.32%, the Nasdaq had lost 1% and the S&P 500 had retreated 0.87%. Yields are rising again today, especially on the long end of the curve, a move that continues to shape trading across rate-sensitive assets.

Consumer and crypto trends shape sector moves

Retail commentary this week indicates consumers are still spending, but they are becoming more selective about where and how they spend. Walmart says shoppers pressured by higher fuel prices are visiting stores less often and buying lighter loads, while Target reports that customers are prioritizing value and essentials; Home Depot and Lowe’s also indicate that both do-it-yourself and professional customers are favoring smaller home improvement projects over larger purchases.

Deep discount chains including TJX, Ross Stores and BJ’s Wholesale Club say store traffic is increasing across income groups, although lower-income consumers remain under financial pressure. That trend matters for investors because consumer spending accounts for about 70% of gross domestic product, with retail sales generating 41.5% of GDP, as the market heads toward the holiday shopping season.

In early trading, Walmart and Target are hovering around flat, Home Depot is up 0.65%, Lowe’s is flat, Ross is higher by 7.1% and BJ’s is gaining nearly 2%. Cryptocurrency-linked shares are also advancing as Bitcoin rises 20% for the week, lifting Strategy by 7.3% and Coinbase Global by 5%, while investors are also watching Nvidia ahead of its earnings report next Wednesday for updates on data center demand and artificial intelligence spending.

In our earlier coverage of growing consumer selectivity in the U.S., we noted that households are prioritizing essentials and trimming bigger-ticket purchases as fuel costs and budget pressure rise. We also highlighted how this shift supports off-price and value retailers while premium brands can still see resilient demand, shaping expectations for promotions and product strategy ahead of the holiday season.

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