US Stocks Drop on Walmart Outlook, Trump Tariffs
US stocks pulled back on Thursday as investors scrutinized Walmart's outlook and assessed the potential impact of President Trump's planned tariffs and policy shifts. The Dow Jones Industrial Average (^DJI) fell roughly 450 points, or around 1%. The S&P 500 (^GSPC) dropped 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) also lost about 0.5%.
Concerns over corporate headwinds grew after Walmart beat quarterly profit projections but issued cautious fiscal 2026 guidance. Shares of the retail giant declined by more than 6%. Walmart's decline, along with roughly 4% drops in Goldman Sachs (GS) and JPMorgan (JPM), weighed on the Dow.
President Trump's tariffs have emerged as a looming challenge, prompting companies like General Motors (GM) to consider major business changes. His planned 8% cut in Pentagon spending is another policy overhaul that has dragged down Palantir's (PLTR) shares by approximately 5%.
Markets were already wary of Trump's next move, as a clash with Ukraine's president had elevated geopolitical fears. Gold (GC=F) hit a fresh record high as investors sought less risky assets.
Market Highlights:
* Dow Jones Industrial Average (DJI): 44,176.65 (-1.01%)
* S&P 500 (GSPC): 6,117.52 (-0.43%)
* Nasdaq Composite (IXIC): 11,882.09 (-0.47%)
Sector Performance:
* Consumer Discretionary (XLC) and Financials (XLF) led losses.
* Healthcare (XLV) and Energy (XLE) were in positive territory.
Key Events and News:
* Walmart posts cautious outlook, shares tumble.
* Palantir stock declines on Pentagon spending concerns.
* Alibaba surges on robust AI momentum.
* Citi warns of potential downside risk from Trump's policy effects.
* CEO confidence hits a three-year high.
* Delta offers $30,000 to passengers on crashed flight.
* Morgan Stanley reverses views on Chinese bear market.