US Stocks Decline on Headwinds and Tariffs

U.S. stocks faced a pullback on Thursday as investors analyzed Walmart's outlook and assessed the repercussions of President Trump's planned tariffs and policy changes.

The Dow Jones Industrial Average (^DJI) lost approximately 450 points, or around 1%. The S&P 500 (^GSPC) fell 0.5%, reversing after its second consecutive record high on Wednesday, while the tech-heavy Nasdaq Composite (^IXIC) also declined by 0.5%.

Concerns intensified regarding potential challenges for corporate America after Walmart exceeded quarterly profit expectations but issued conservative guidance for fiscal year 2026. Shares of the retail giant plummeted more than 6%. Walmart's downturn, coupled with approximately 4% drops in Goldman Sachs (GS) and JPMorgan (JPM), weighed on the Dow.

Looming uncertainty surrounds Trump's tariffs, which have prompted entities like General Motors (GM) to consider substantial alterations to their operations. The latest policy adjustment is a proposed 8% reduction in Pentagon spending, negatively impacting Palantir's (PLTR) stock by about 5%.

Gold (GC=F) reached a new record high as investors shifted away from riskier assets.

Walmart's Challenges and CEO Confidence

Walmart's cautious guidance triggered a significant drop in its stock, marking its worst day since November 2023. CEO confidence, on the other hand, reached a three-year high, indicating optimism among business leaders. The Conference Board's measure of CEO confidence rose by nine points in the first quarter of 2025 to 60, its highest level in three years.

Energy and Amazon's Cinematic Acquisition

Energy stocks continued to outperform other sectors and the broader market, with the S&P 500 Energy ETF (XLE) up more than 7% year-to-date. Amazon's MGM Studios (AMZN) acquired creative control of the iconic "James Bond" franchise as the company aims to strengthen its position in the streaming wars.

Palantir's Pentagon Concerns and Alibaba's Tech Momentum

Palantir's stock experienced a decline amid concerns about Pentagon spending cuts, extending a sell-off from the previous session. Alibaba's U.S.-listed stock surged, driven by the Chinese tech giant's strong earnings and aggressive push into artificial intelligence (AI).