US Stocks Dip as Walmart Outlook and Trump's Policies Weigh
US stocks retreated on Thursday as investors scrutinized Walmart's earnings and remained cautious amid concerns over President Trump's tariffs and policy shifts.
Market Performance
The S&P 500 (^GSPC) declined 0.2%, breaking its two-day streak of record highs. The Dow Jones Industrial Average (^DJI) fell 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) retreated by 0.1%.
Walmart's Outlook Dampens Sentiment
Walmart's downbeat outlook for 2025 raised concerns about headwinds for corporate America. Despite meeting expectations for profit and revenue, Walmart's shares plunged over 4% as investors worried about future sales growth.
Trump's Tariffs and Military Spending Cuts
Trump's planned tariffs have stirred anxiety among businesses, including General Motors (GM). Additionally, the President's proposed 8% reduction in military spending negatively impacted Palantir's (PLTR) stock.
Geopolitical Tensions and Risk Aversion
Escalating geopolitical tensions between the US and Ukraine pushed investors towards safe-haven assets like gold (GC=F), which reached a new record high. Gold's allure increased as concerns mounted over the potential fallout from Trump's policies.
Caution in the Markets
The Federal Reserve's cautious stance, coupled with Trump's unpredictable policy changes, eroded investor confidence in the prospects for interest rate cuts. The markets remained wary of the potential impact of Trump's next moves.
Key Points
* US stocks pulled back due to Walmart's weak outlook and Trump's policy shifts.
* Tariffs and military spending cuts raised concerns about corporate headwinds.
* Geopolitical tensions fueled risk aversion and pushed investors towards gold.
* The Federal Reserve's cautiousness and policy uncertainty weighed on investor sentiment.