U.S. Stock Futures Retreat as Investors Examine Walmart Earnings Amid Tariffs Concerns

U.S. stock futures declined on Thursday as investors analyzed Walmart's earnings report and cautiously monitored the impact of President Trump's proposed tariffs and policy adjustments.

Futures on the benchmark S&P 500 (ES=F) lost 0.3% after the index closed at a record high for the second consecutive day on Wednesday. Contracts on the Dow Jones Industrial Average futures (YM=F) and tech-heavy Nasdaq 100 (NQ=F) also declined approximately 0.3%.

Concerns intensified over potential challenges for corporate America after Walmart issued a less optimistic outlook for 2025. Despite meeting market expectations for profit and revenue, the retail giant's shares slipped in premarket trading.

One significant concern is Trump's tariffs, which have prompted companies like General Motors (GM) to consider significant adjustments to their operations. The latest in his policy overhaul includes a planned 8% reduction in military spending, negatively impacting Palantir's (PLTR) stock.

Markets remained cautious in anticipation of Trump's next move, especially after a clash with the Ukrainian president heightened geopolitical concerns. Investors sought refuge in gold (GC=F), driving it to a new record high.

Furthermore, the Federal Reserve's cautious stance amidst policy shifts by the White House dampened investor sentiment, as expectations for interest rate cuts diminished.

Key Earnings and Economic Data

* Earnings: Alibaba Group (BABA), Walmart (WMT), Block (XYZ), Booking Holdings (BKNG), Rivian (RIVN), Shake Shack (SHAK), Unity (U), Texas Roadhouse (TXRH), Dropbox (DBX)
* Economic Data: Initial jobless claims (week ending Feb. 15); Philadelphia Fed business outlook (February); Leading index (January)

Notable Market Updates

* Alibaba stock surged in premarket trading after strong quarterly revenue performance.
* Gold hit a record high as geopolitical concerns escalated.
* Morgan Stanley shifted its stance on Chinese stocks to a more optimistic outlook.