The Prime Daily: 21 August 2026

Authored By Prime Research | Published at: Aug 21, 2026 08:54 AM IST

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Wall Street falls as bond market intervention effects fade, Walmart results disappoint

Major U.S. stock indexes suffered sharp declines as a brief reprieve in the bond market abruptly reversed. Despite recent efforts by the Treasury Department to boost long-term government debt buybacks, investor anxiety over persistent inflation and rising national debt pushed 10- and 30-year Treasury yields higher, weighing heavily on equities.

U.S. Treasury Secretary Scott Bessent indicated that the government could further increase Treasury buybacks to stabilise the debt market amid concerns over the widening fiscal deficit. The Treasury had announced plans to double buybacks of 10- to 30-year debt to at least USD 4 billion per operation.

Walmart stock dropped roughly 9% even after beating revenue expectations and raising its full-year outlook, as the retailer reported its weakest sales growth in over six years. Consumer discretionary and staples shares underperformed after Walmart reported weaker-than-anticipated guidance.

The Trump administration is reportedly considering reducing tariffs on Canadian automobile imports from 25% to 15% as part of a broader strategic trade agreement. In return, Canada is expected to withdraw its retaliatory measures.

Crude prices rose to one-month highs after President Trump threatened ‘tremendous economic consequences’ on nations trading with Iran, adding a geopolitical risk premium. The EPA also issued an early waiver to boost gasoline supply as pump prices remain elevated near $4.10/gallon nationally.

Energy stocks emerged as a rare bright spot in the market amid significant gains in oil prices.

Cryptocurrencies decoupled from the drop in equity markets, with Bitcoin and Ethereum posting massive gains. The rally was fueled by positive sentiment from a White House summit, alongside a concentrated short-covering event that triggered over $1 billion in liquidations within a very brief window.

Weekly jobless claims fell to 206,000, and the Philadelphia Fed manufacturing survey jumped to a five-year high of 47.4.

The Indian rupee also snapped a three-day losing streak, gaining 5 paise to close at 95.7 yesterday. The recovery came as a wave of selling pushed the U.S. dollar to multi-month lows against major currencies. The sharp reversal was triggered by a U.S. Treasury intervention that pulled long-term bond yields lower, weakened the greenback and sparked a strong rally in regional Asian currencies.

India allowed duty-free imports of up to 1 million tonnes of raw sugar until October 31 under a Tariff Rate Quota, marking the country’s first sugar imports in nearly a decade. The move aims to ease domestic supply pressures and contain elevated sugar prices.

Asian markets opened lower today but are now recovering, tracking a sharp pullback on Wall Street as long-dated U.S. Treasury yields rebounded.

Nifty snapped its seven-session losing streak, rising 153 points to close at 24,231 yesterday.

The rebound helped Nifty reclaim its near-term averages, signalling improved near-term momentum. Importantly, Nifty sustained above the crucial 24,000 support zone, which coincides with the 61.8% retracement of the previous upswing and an upward-sloping trendline connecting the April, June, and July swing lows on the daily chart.

Sustained buying above 24375 will be crucial to negate the prevailing short-term downtrend and open the door to further recovery. Until then, the 24,000–24,050 band is likely to remain a key support area, while 24,300–24,375 may act as the immediate resistance zone.

Indian equities are set for a mildly positive note on conducive Asian cues.

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