The bond market wobbled, the Treasury Secretary tried to catch it.
Then bitcoin ripped, Walmart fell and Philadelphia's factories quietly delivered the surprise of the week.
Chain reactions
On Wednesday, Aug. 20, U.S. Treasury Secretary Scott Bessent stunned Wall Street with a rare intervention, announcing the U.S. would "at least double" its purchases of longer-dated government bonds.
The 30-year Treasury yield had just hit 5.27%, the highest since before the 2008 financial crisis, driven by fears about America's $40 trillion debt pile and a fiscal 2026 deficit tracking above $1.8 trillion.
Yields tumbled. For about a day.
The next day, the 30-year rose right back above 5.24%, wiping out most of the relief. JPMorgan warned the move was a "Band-Aid" that doesn't
fix the deficit problem.
Bessent's bond rescue delivered one clear winner: cryptocurrencies. Bitcoin surged from around $63,000 Monday to above $77,000 Friday morning — a weekly gain of roughly 23%, its best week since February 2024.
The rally was turbocharged by President Donald Trump's push for Congress to pass the CLARITY Act, a crypto-friendly regulatory framework.
About $2.7 billion in bearish crypto bets were forcibly closed out, a record short squeeze. Ethereum, XRP and other majors followed.
Walmart woes
Wall Street's biggest retailer delivered a beat-and-raise quarter Thursday morning, and investors punished it anyway.
Walmart posted second-quarter revenue of $187.9 billion and adjusted earnings per share of 81 cents, both above expectations. Global e-commerce grew 23%, advertising 38% and marketplace 52%. Full-year guidance was raised.
The problem: The beat was heavily inflated by roughly $2.9 billion in tariff refunds, money returned to Walmart after the U.S. Supreme Court struck down some of Trump's 2025 tariffs. Strip that out, and the picture was less rosy. Shares fell 9.2% on Thursday, a $90 billion loss in market value.
Factories roar in Philadelphia
The Philadelphia Fed's manufacturing index unexpectedly jumped to 47.4 in August, its highest level since April 2021, from 41.4 in July. Economists had forecast a plunge to 24.1.
Nearly 57% of firms reported increased activity. The employment sub-index rose, and both price gauges eased. Optimism about the future reached the highest level since 1983.
Benzinga is a financial news and data company headquartered in Detroit.
This article originally appeared on Detroit Free Press: Treasury calmed debt fears but relief was temporary on Wall Street
