US Equities Retreat Amidst Economic Uncertainty

On Thursday, US stocks experienced a downturn as investors evaluated Walmart's outlook and weighed the impact of President Trump's tariff and policy initiatives. The Dow Jones Industrial Average (^DJI) declined by over 600 points, representing a drop of approximately 1.4%. The S&P 500 (^GSPC) lost 0.8%, falling from its second consecutive record high on Wednesday, while the tech-heavy Nasdaq Composite (^IXIC) retreated by around 0.8%.

Corporate Headwinds Emerge

Concerns about forthcoming challenges for American businesses intensified after Walmart surpassed quarterly profit expectations but issued cautious guidance for fiscal year 2026. Shares of the retail giant plunged by 6%.

Among the looming challenges are Trump's tariffs, which have prompted companies like General Motors (GM) to consider significant business changes. The latest in his policy overhaul is a proposed 8% reduction in Pentagon expenditure, negatively impacting Palantir's (PLTR) stock.

Market Volatility Continues

Markets were already wary of Trump's next move after a confrontation with Ukraine's president brought geopolitical worries to the forefront. Gold (GC=F) surged to a new record high as investors sought safe havens.

The Federal Reserve's caution in light of White House policy dampened sentiment as investors lost confidence in interest rate cut prospects.

Sector Losses and Winners

The Financials sector (XLF) led the market decline on Thursday, losing over 2%. Goldman Sachs (GS), JPMorgan (JPM), and Morgan Stanley (MS) each fell by more than 4%.

In contrast, energy stocks outperformed the broader market, buoyed by soaring natural gas prices. The S&P 500 Energy ETF (XLE) had gained over 7% year-to-date, compared to the index's 3.5% rise during the same period.

Amazon Secures 'James Bond' Franchise

Amazon's MGM Studios (AMZN) acquired creative control of the iconic "James Bond" franchise in a move to enhance its streaming capabilities. The deal grants Amazon distribution rights, casting authority, and storyline direction.

Delta Offers Passengers Compensation

Delta Air Lines (DAL) announced it would pay each passenger onboard the Minneapolis-to-Toronto flight that crash-landed $30,000 without any stipulations. The offer does not impede lawsuits against Delta regarding the incident.

Alibaba Boosted by AI Momentum

Shares of Alibaba's (BABA) US-listed entity soared by 9% after the Chinese tech giant reported strong earnings and highlighted aggressive investments in artificial intelligence (AI).

Palantir Concerns Linger

Concerns over Pentagon spending cuts sparked a further 11% decline in Palantir's stock. The sell-off follows a more than 10% drop in the previous session.

Market Outlook Remains Uncertain

As of 2:01:40 PM EST, the Dow Jones Industrial Average (^DJI) stood at 44,032.46, down 1.33%. The S&P 500 (^GSPC) had lost 0.68%, while the Nasdaq Composite (^IXIC) had retreated by 0.70%. Economic and geopolitical uncertainties continue to overshadow market sentiment, leaving investors on edge.