US Stocks Retreat Amid Market Volatility
US stocks experienced a pullback on Thursday as investors evaluated Walmart's financial outlook and assessed the impact of President Trump's planned tariffs and policy shifts.
The Dow Jones Industrial Average (^DJI) declined significantly, losing approximately 450 points or around 1%. The S&P 500 (^GSPC) dropped 0.5%, retreating from its second consecutive record-high close on Wednesday. The tech-heavy Nasdaq Composite (^IXIC) also fell by about 0.5%.
Concerns emerged about potential headwinds for corporate America after Walmart exceeded quarterly profit expectations but provided cautious guidance for its 2026 fiscal year. Walmart's shares declined by over 6%. The retailer's decline, combined with approximately 4% drops in shares of Goldman Sachs (GS) and JPMorgan (JPM), weighed heavily on the Dow.
President Trump's tariffs, which have prompted companies like General Motors (GM) to consider major business adjustments, remain a looming threat. The latest in his policy overhaul is an intended 8% reduction in Pentagon spending, which adversely impacted shares of Palantir (PLTR), leading to a decline of approximately 5%. The markets were already anxiously anticipating Trump's next move, as a recent clash with Ukraine's president heightened geopolitical concerns.
In response to diminished risk appetite among investors, gold (GC=F) reached a fresh record high.
Other Market Highlights:
* Rivian (RIVN) reported a $170 million "gross profit" for the fourth quarter, driven by improvements in variable costs and revenue per delivered unit.
* Walmart's worst trading day in over a year weighed heavily on the Dow.
* Citi expressed concerns that potential disruptions from Trump's policies may not yet be fully reflected in the stock market rally.
* CEO confidence reached a three-year high, with executives expressing optimism about the business outlook.
* Risk-off sentiment swept the market, leading to declines in shares of Intel (INTC), Crowdstrike (CRWD), and Palantir (PLTR).
* Energy stocks led year-to-date gains, bolstered by surging natural gas prices.
* Amazon acquired creative control of the "James Bond" franchise.
* Delta offered $30,000 to passengers on a crash-landed flight in Toronto.
* Palantir's stock continued to decline due to concerns about Pentagon spending cuts.
* Alibaba's stock surged after reporting strong results and highlighting its momentum in AI.
* Consumer Discretionary and Financials stocks led market losses early in the trading day.
* Carvana's stock fell despite beating earnings expectations.
* Alibaba's premarket surge indicated a potential comeback for the Chinese online retailer.
* Gold hit a fresh record high as investors sought shelter amidst geopolitical worries.
* Morgan Stanley reversed its views on the Chinese bear market, predicting a rise driven by AI advancements.