The bond market swings back to worries and knocks US stocks lower

NEW YORK (AP) 鈥� The that swept just a day earlier disappeared on Thursday as oil prices, worries about high and kept rising. That helped knock the U.S. stock market to its worst day in three weeks, and led the way on concerns about its upcoming profits.

The S&P 500 fell 0.9% for in the five days since setting last week. The Dow Jones Industrial Average dropped 703 points, or 1.3%, and the Nasdaq composite sank 1%.

The bond market remains the center of the action after yields charged higher through the summer. Treasury Secretary Scott Bessent that brought some temporary relief. His department said it will at least double the size of its planned purchases of longer-term Treasurys from Sept. 9 through Nov. 4.

That helped push yields down after the 10-year Treasury鈥檚 yield hit its highest level in more than a year and the 30-year yield got back to where it was in 2007. It was a big deal because high yields slow the economy by , companies and the government, and they can undercut prices for stocks and other investments.

But analysts had cautioned the effect may be short lived, given how small the purchases are relative to the overall size of the Treasury market and how they don鈥檛 fix the fundamental concerns that had driven up yields. Plus, more signals arrived quickly to keep those concerns high.

The topped $40 trillion on Wednesday, a staggering record that arrived just months after the national debt first blew past the $39 trillion mark in April, because Washington continues to spend far more money than it brings in.

And on Thursday, the price for a barrel of Brent crude climbed 2.4% to $93.78 as uncertainty continues about when the will allow oil tankers to freely exit the Persian Gulf again. President Donald Trump with 鈥渢he MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY鈥� late Wednesday but provided few details.

That helped push the 10-year Treasury yield up to 4.70% from 4.65% late Wednesday. It鈥檚 almost back to its 4.71% level from late Tuesday, before the Treasury Department made its announcement.

A couple encouraging reports on the U.S. economy also helped raise longer-term Treasury yields, which move with investors鈥� expectations for the economy and inflation in coming years. One said last week than economists expected, while another said manufacturing in the mid-Atlantic region appears to be much stronger than expected.

On Wall Street, Walmart was the heaviest weight on the S&P 500 and fell 9.2% for its worst loss in four years even though it reported stronger profit and revenue for the latest quarter than analysts expected. Investors focused instead on an important underlying measure of revenue growth, which slowed again. Its forecast for profit in the current quarter also fell short of analysts鈥� expectations.

Given its massive size, Walmart offers a look at how shoppers are doing across the United States. A on sales at U.S. retailers overall last month had raised worries that shoppers may be succumbing to pressure from high inflation and a .

Advance Auto Parts tumbled 24.5% for its worst loss in three years after the retailer reported weaker revenue for the latest quarter than analysts expected, even though its profit topped expectations. CEO Shane O鈥橩elly said that 鈥渢ighter household budgets constrained spending more than we anticipated, especially during the last four weeks of the quarter.鈥�

Spending by U.S. consumers is the main engine of the economy, and a pullback by them could exacerbate in growth for the economy.

A pullback could also mean a double-whammy for travel companies, which would see fewer bookings when they have to pay higher prices for fuel. Norwegian Cruise Line Holdings fell 3.4%, while United Airlines sank 3.5% and American Airlines lost 2.5%.

Helping to keep Wall Street鈥檚 losses in check was Deere, which reported stronger profit and revenue for the latest quarter than analysts expected. It rose 6.9% as the company said order trends indicate the agriculture equipment business looks set to accelerate after this year.

All told, the S&P 500 fell 66.82 points to 7,641.16. The Dow Jones Industrial Average dropped 703.84 to 52,759.21, and the Nasdaq composite sank 263.92 to 26,067.17.

In stock markets abroad, indexes were mixed in Europe following a stronger finish in Asia.

South Korea鈥檚 Kospi soared 5.9% for one of the world鈥檚 biggest moves after the two tech titans that dominate its market, Samsung Electronics and SK Hynix, jumped. Such swings have become more common for Seoul鈥檚 market, which has borne the brunt of rising and falling worries that winning stocks in the boom may have shot too high.

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AP Business Writers Chan Ho-him and Michelle Chapman contributed to this report.