NEW YORK, New York - Wall Street dived Thursday after efforts by the U.S. Treasury Department to rein in government bond yields hit a brick wall. Yields on U.S. Treasuries rose above where they were before the plan was announced. On Wednesday, Treasury said it would double its buyback of bond issues over the next four months. However, that meant Treasury would buy $4 billion worth of paper instead of $2 billion. Considering government debt earlier in the week topped $40 trillion, the move would be akin to removing a grain of sand from Miami Beach to further erosion.

Treasury Secretary Scott Bessent said Thursday the buyback could be more than the announced $4 billion. "We'll see what the conditions are, and you know we will analyse them," he said. "All we're trying to do is get people to focus on the fundamentals and not trade the headlines during a quiet period in a thin market."

"We have a big toolkit, so we'll see," Bessent added. "Part of it is signalling here and to show that we believe that the yields don't reflect the underlying fundamentals."

The Treasury secretary's words did little to persuade the markets as bond yields shot higher after his briefing.

"This is not the cure to what ails the bond market. There are structural forces here at play that are really beyond the Treasury and the administration's control," Adam Phillips, managing director of investments at EP Wealth Advisors, told CNBC Thursday, adding that the relief seen in the wake of past interventions has generally been short-lived. "You're going to need to come at it with a little bit more force if it's going to have staying power," he said.

Dow Drops More Than 700 Points

The Dow Jones Industrial Average ended the session deep in the red, plummeting 700.75 points, or 1.31 percent, to close at 52,762.30. The blue-chip index traded between a low of 52,754.90 and a high of 53,381.22 on the day, as all 30 components finished lower. The selling accelerated in the final hour of trading, erasing the previous session's modest gains and pushing the index further from its 52-week high of 54,744.33.

S&P 500 Breaches Key Level

The broader S&P 500 shed 66.35 points, or 0.86 percent, settling at 7,641.63. The benchmark index traded within a range of 7,639.01 to 7,699.96, as losses were broad-based, with energy, technology, and consumer discretionary sectors leading the decline. The S&P 500 remains well above its 52-week low of 6,316.91 but has now retreated more than 2 percent from its recent peak of 7,816.70.

Nasdaq Composite Slides as Tech Titans Tumble

The Nasdaq Composite fell 263.92 points, or 1.00 percent, to finish at 26,067.17. The tech-heavy index was weighed down by sharp declines in mega-cap growth names, as rising Treasury yields pressured high-valuation stocks. Semiconductor shares and cloud computing firms were among the hardest hit, with the Nasdaq now trading more than 5 percent below its all-time high reached earlier this year.

Key U.S. Closing Quotes (Thursday):

Thursday's Forex Markets: Euro Flat, Pound Gains as Yen, Aussie, Loonie, and Franc Slide

Currency markets delivered a mixed session on Thursday, with the euro treading water against the dollar while sterling advanced. Meanwhile, the Japanese yen, Australian dollar, Canadian dollar, and Swiss franc all lost ground.

Euro Stagnant as ECB Signals Hold

The euro traded towards the end of the day essentially flat against the U.S. dollar, with the EUR/USD pair settling at 1.1676, recording a negligible change of just 0.01 percent. The lack of movement came as traders digested comments from European Central Bank officials reiterating a cautious approach to further rate cuts, while weaker-than-expected eurozone services data capped any upside momentum.

Pound Sterling Outperforms on Hawkish BoE Bets

The British pound emerged as one of the day's winners, with GBP/USD rising 0.16 percent to settle at 1.3628. Sterling found support after UK inflation figures came in hotter than forecast earlier in the week, reinforcing expectations that the Bank of England will maintain its restrictive policy stance for longer than previously anticipated. The pair traded steadily through the London and New York sessions, holding above the 1.3600 handle.

Yen Weakens Despite Intervention Warnings

The Japanese yen continued its downward trajectory Thursday, with USD/JPY climbing 0.61 percent to 159.13. The move pushed the pair closer to the 160 level, reigniting speculation that Japanese authorities may step in to support the currency. Despite verbal intervention warnings from finance ministry officials, the yield differential between U.S. Treasuries and Japanese government bonds remained wide, weighing on the yen throughout the session.

Commodity Currencies Under Pressure

The Australian dollar slipped against its U.S. counterpart, with AUD/USD falling 0.20 percent to 0.7111. The decline came as iron ore prices eased and risk sentiment softened following lacklustre Chinese industrial data, which dampened the outlook for Australia's resource exports.

The Canadian dollar also lost ground, as USD/CAD rose 0.12 percent to 1.3793. The loonie was pressured by lower crude oil prices, which offset stronger-than-expected domestic retail sales figures. Traders also looked ahead to next week's Bank of Canada meeting, where policymakers are widely expected to hold rates steady.

Swiss Franc Slides on Risk-On Flows

The Swiss franc on Thursday weakened notably, with USD/CHF advancing 0.43 percent to last trade at 0.8008. The move reflected improved global risk appetite following the rally in Asian equities, which reduced demand for the safe-haven currency. The pair breached the 0.8000 level during intraday trading as investors rotated into higher-yielding assets.

Key FX Closing Quotes (Thursday):

Global Stock Markets Divided Thursday as FTSE Edges Higher While European Indices Slip; Asian Shares Rally

World stock markets delivered a mixed performance on Thursday, with Asian bourses posting solid gains while European benchmarks retreated. The divergent session saw London's FTSE 100 buck the trend in continental Europe, closing marginally higher, as investors weighed corporate earnings, interest rate expectations, and regional economic data.

Canadian Market Shows Resilience

Canada's S&P/TSX Composite Index managed to outperform its U.S. peers, declining just 36.37 points, or 0.10 percent, to close at 36,365.42. The index traded between 36,222.29 and 36,481.21, buoyed by strength in financials and materials sectors, which offset weakness in energy stocks as crude prices retreated. The TSX remains near the upper end of its 52-week range, supported by solid commodity prices and a resilient domestic economy.

FTSE Finishes in Green

In London, the FTSE 100 managed a slight advance, rising 4.81 points, or 0.04 percent, to finish at 10,748.16. The index traded between a low of 10,684.38 and a high of 10,766.85 on the day, as a weaker pound provided support to the multinational heavyweights on the benchmark.

However, sentiment turned sour across the rest of the continent. In Germany, the DAX declined by 108.29 points, a drop of 0.42 percent, closing at 25,983.04. The index remained well within its 52-week range of 21,863.81 to 26,573.50.

France's CAC 40 also finished lower Thursday, losing 48.82 points, or 0.57 percent, to settle at 8,453.09. The broader EURO STOXX 50 fell 22.40 points, or 0.35 percent, ending the session at 6,422.06. The pan-European Euronext 100 slipped 4.82 points, or 0.25 percent, to 1,933.56, while in Belgium Thursday, the BEL 20 edged down by 4.27 points, or 0.07 percent, at 5,743.62.

Asia: Hong Kong and Japan Lead Gains

Asian markets closed sharply higher, powered by a strong rally in technology and export-related stocks. In Hong Kong, the Hang Seng Index surged 203.42 points, or 0.80 percent, to 25,698.49, rebounding from its 52-week low of 22,518.00.

Japan's Nikkei 225 posted one of the most impressive performances, skyrocketing 890.37 points, or 1.36 percent, to close at 66,216.79, as the yen's weakness boosted automakers and electronics firms.

In China, the SSE Composite eked out a 9.30-point gain, or 0.24 percent, closing at 3,903.72.

In South Korea, the KOSPI delivered the standout move of the day, rocketing 381.41 points, or a stunning 5.89 percent, to 6,852.58, recovering sharply from its previous session lows. This despite South Korea's current rift with U.S. President Donald Trump.

Elsewhere in the region on Thursday, India's S&P BSE SENSEX added 628.04 points, or 0.82 percent, finishing at 77,537.72. In Taiwan, the TWSE rose by 214.39 points, or 0.48 percent, to 44,933.74.

Australia's S&P/ASX 200 climbed 30.00 points, or 0.33 percent, to 9,083.80, while the broader All Ordinaries index advanced 43.30 points, or 0.47 percent, to 9,298.50. New Zealand's S&P/NZX 50 slipped 9.85 points, or 0.07 percent, to 13,919.82.

In Indonesia on Thursday, the IDX Composite jumped 107.46 points, or 1.68 percent, to 6,501.58, and Malaysia's FTSE Bursa KLCI rose 5.39 points, or 0.31 percent, to 1,736.71.

Losers and Laggards

Singapore's STI Index fell 22.33 points, or 0.39 percent, to 5,671.91.

In the Middle East on Thursday, Egypt's EGX 30 bucked the regional trend to rise 224.40 points, or 0.41 percent, at 54,737.10, on volume of 306.167 million. Israel's TA-125 inched up 0.90 points, or 0.02 percent, to 4,040.89.

South Africa's Top 40 USD Net TRI Index lost 34.56 points, or 0.48 percent, ending at 7,211.61.

Key Closing Quotes:

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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