US Stocks Dip on Walmart Forecast, Gold Hits Record High
US stocks are poised for a modest decline from record highs following a disappointing earnings outlook from Walmart Inc. The retail giant's forecast painted a slightly dimmer picture of consumer spending, weighing on market sentiment.
Treasury Yields Ease on Fed Outlook
Treasury yields fell after Treasury Secretary Scott Bessent indicated that a shift towards longer-term Treasuries in government borrowing is not imminent, amid the Federal Reserve's quantitative tightening efforts. The 10-year benchmark yield declined, flattening the yield curve.
Walmart Shares Slide on Earnings Miss
Walmart shares tumbled as much as 9.5% in premarket trading after the company reported lower-than-expected profit guidance for the year. The weaker outlook stoked concerns about the health of the consumer economy.
Mixed Earnings Mar Market
Premarket earnings from video game platform Vimeo Inc. and used car retailer Carvana Co. also disappointed, adding to market jitters. The mixed corporate results compounded concerns spurred by President Trump's trade tariff threats and shifting support for Ukraine.
Gold Surges to Record on Geopolitics
Geopolitical tensions lifted gold prices to a fresh all-time high, with an ounce trading above $2,954. Investors have sought safe-haven assets amid uncertainties surrounding the Russia-Ukraine conflict and Trump's foreign policy stance.
Jobless Claims Steady, Labor Market Strength Remains
Weekly jobless claims data showed little change in unemployment applications, signaling continued robust demand for workers. This supports the view that the labor market remains strong despite macroeconomic uncertainties.
Market Concerns Linger
Investors remain cautious about the Trump administration's fiscal policies, which could potentially widen the deficit and drive inflation. They also worry about the impact of potential mass deportations on labor shortages.
Defense Stocks Slump on Pentagon Spending Cuts
Palantir Technologies Inc. extended its losses following Defense Secretary Pete Hegseth's announcement of plans to reduce military spending by 8% over the next years. Similar declines were seen in European defense stocks like Renault SA and Mercedes-Benz Group AG.
Chinese E-commerce Gains
In contrast, Alibaba Group Holding Ltd.'s third-quarter revenues beat estimates, boosting its shares by over 7%. The positive results lifted other Chinese e-commerce peers like JD.com Inc. and PDD Holdings Inc.
Key Events and Market Movements
* Fed speakers Austan Goolsbee and Alberto Musalem to speak on Thursday.
* Eurozone PMI data and US PMI, existing home sales, and consumer sentiment on Friday.
Market Summary
* S&P 500 futures: Down 0.3%
* Nasdaq 100 futures: Down 0.3%
* Dow Jones Industrial Average futures: Down 0.3%
* Stoxx Europe 600: Little change
* MSCI World Index: Little change
* Bloomberg Dollar Spot Index: Down 0.4%
* Euro: Up 0.3% to $1.0451
* British pound: Up 0.3% to $1.2618
* Japanese yen: Up 1% to 149.99 per dollar
* Bitcoin: Up 1.1% to $97,340.64
* Ether: Up 1.1% to $2,739.76
* 10-year Treasury yield: Down 2 basis points to 4.51%
* West Texas Intermediate crude: Up 0.4% to $72.54 a barrel
* Spot gold: Up 0.3% to $2,943.60 an ounce