US Stocks Pull Back Amidst Market Scrutiny and Trump Policy Concerns

Key Market Updates:

* The Dow Jones Industrial Average (^DJI) dropped significantly, falling by over 450 points or about 1%.
* The S&P 500 (^GSPC) lost 0.5%, eroding gains from its second consecutive record close on Wednesday.
* The tech-heavy Nasdaq Composite (^IXIC) also experienced a 0.5% decline.

Walmart's Cautious Outlook

* Walmart (WMT) topped quarterly profit estimates but provided a cautious outlook for fiscal year 2026, contributing to its shares tumbling by more than 6%.
* The retail giant's decline, coupled with drops in Goldman Sachs (GS) and JPMorgan (JPM), weighed heavily on the Dow.

Tariff Concerns and Pentagon Spending Cuts

* President Trump's proposed tariffs have raised concerns among businesses, with General Motors (GM) considering major changes.
* A planned 8% reduction in Pentagon spending prompted a decline in Palantir's (PLTR) stock by approximately 5%.

Rising Gold Prices and Market Volatility

* Gold (GC=F) reached a new record high as investors sought refuge from perceived risks.
* A geopolitical clash between Trump and Ukraine has elevated geopolitical worries, further fueling volatility in markets.

CEO Confidence Hits 3-Year High

* The Conference Board's CEO Confidence Index surged by nine points, reaching a three-year high of 60 in the first quarter of 2025.
* This shift from "cautious optimism" to "confident optimism" among business leaders reflects improved economic conditions.

Sector Performance and Leading Stocks

* Energy stocks outperformed other sectors in the S&P 500, driven by rising natural gas prices.
* Financials (XLF) experienced significant losses, with Goldman Sachs (GS), JPMorgan (JPM), and Morgan Stanley (MS) declining by more than 4%.
* Intel (INTC), Crowdstrike (CRWD), and Palantir (PLTR), which were among the top performers in 2025, faced declines of 3% or more.

Key Updates from Thursday, February 20, 2025

* Delta Air Lines (DAL): Offering $30,000 compensation to passengers on a crash-landed flight in Toronto.
* Amazon (AMZN): Gaining creative control over the "James Bond" franchise through MGM Studios.
* Alibaba (BABA): Surging in premarket trading after posting strong results and highlighting AI growth.
* Walmart (WMT): CFO defends conservative guidance despite Wall Street's confidence in the stock.
* Carvana (CVNA): Stock declines despite an earnings beat, reflecting concerns about the company's long-term performance.