US Stocks Dip as Investors Assess Walmart Outlook and Trump's Policies
U.S. stocks pulled back on Thursday as investors scrutinized Walmart (WMT) earnings and assessed the impact of President Trump's planned policy shifts. The Dow Jones Industrial Average (^DJI) fell by approximately 450 points, or around 1%. The S&P 500 (^GSPC) dropped by 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) also lost about 0.5%.
Concerns emerged about potential headwinds for corporate America after Walmart reported a quarterly profit beat but issued cautious guidance for fiscal year 2026. Shares of the retail giant declined by more than 6%. Walmart's decline, along with drops of around 4% in Goldman Sachs (GS) and JPMorgan (JPM), weighed on the Dow.
Trump's tariffs have also raised concerns, prompting companies like General Motors (GM) to consider significant changes to their operations. His planned 8% cut in Pentagon spending dragged down Palantir's (PLTR) stock by approximately 5%.
Markets were also jittery about geopolitical risks, following a clash between Trump and Ukraine's president. Gold (GC=F) reached a new record high as investors reduced risk exposure.
Other notable market updates include:
* Rivian: Reported a $170 million "gross profit" in the fourth quarter, with improved variable costs.
* Citi: Expressed concerns that investors may have priced in positive news surrounding Trump's policies, leaving room for disappointment.
* CEO Confidence: Reached a three-year high, indicating a positive outlook for business leaders.
* Energy Stocks: Outperformed other sectors due to rising natural gas prices.
* Amazon: Gained creative control of the "James Bond" franchise.
* Delta: Offered $30,000 to passengers on a flight that crash-landed in Toronto.
* Alibaba: Surged 9% after reporting an aggressive push into AI.