US Stocks Fall on Walmart Outlook, Trump Tariffs, and Policy Shifts
US stocks experienced a pullback on Thursday as investors scrutinized Walmart's (WMT) outlook and assessed the impact of President Trump's planned tariffs and government overhaul. The Dow Jones Industrial Average (^DJI) lost about 500 points, or roughly 1.1%. The S&P 500 (^GSPC) declined 0.5%, falling from its second record close in a row on Wednesday, while the tech-heavy Nasdaq Composite (^IXIC) retreated by approximately 0.5%.
Concerns emerged about headwinds facing corporate America after Walmart surpassed quarterly profit expectations but issued cautious guidance for fiscal year 2026. Shares of the retail giant plummeted by 6%.
One looming challenge is Trump's tariffs, which have prompted companies like General Motors (GM) to consider significant adjustments to their operations. The latest policy shift is a planned 8% cut in Pentagon spending, which led to a decline of about 6% in Palantir's (PLTR) stock.
Markets were already anticipating Trump's next move with unease, especially after a clash with Ukraine's president heightened geopolitical tensions. Gold (GC=F) reached a fresh record high as investors sought refuge from risk.
Other Notable News:
* CEO Confidence Hits 3-Year High: Chief executives exhibit increased optimism in their business outlooks, with the Conference Board's measure of CEO confidence increasing to a three-year high of 60.
* Tough Day for 2025 Stock Market Leaders: Risk aversion swept across the market on Thursday, with some of the year's top performers facing substantial losses. Intel (INTC), Crowdstrike (CRWD), and Palantir (PLTR) all experienced declines of over 3%.
* Energy Stocks Outperform Led by Natural Gas: Thanks to surging natural gas prices, energy stocks have outperformed other sectors and the broader market. The S&P 500 Energy ETF (XLE) gained over 7% year-to-date.
* Walmart CFO Defends Conservative Outlook: John David Rainey, Walmart's CFO, seeks to alleviate investor concerns about the company's 2025 outlook, emphasizing that the conservative guidance does not indicate a lack of confidence.
* Amazon Acquires Creative Control of 'James Bond' Franchise: Amazon's MGM Studios obtains creative control over the "James Bond" franchise, bolstering its position in the streaming wars.
* Delta Offers $30,000 to Passengers in Crash-Landed Flight: Delta Air Lines (DAL) compensates each passenger onboard its crash-landed flight from Minneapolis to Toronto with $30,000.
* Palantir Stock Declines on Pentagon Spending Cut Concerns: Shares of Palantir fall over 11% amidst concerns about the impact of Pentagon budget reductions.
* Alibaba Surges on AI Momentum: Alibaba's (BABA) US-listed stock gains 9% after its financial results display strong AI growth and an aggressive push into the sector.
* Consumer Discretionary and Financials Lead Losses: The Consumer Discretionary (XLC) and Financials (XLF) sectors contribute to early market losses on Thursday.