US Stocks Retreat amid Economic Uncertainty and Policy Shifts
US equity markets experienced a downturn on Thursday as investors scrutinized Walmart's outlook and assessed the potential implications of President Trump's proposed policy changes.
The Dow Jones Industrial Average (^DJI) tumbled around 450 points, or approximately 1%. The S&P 500 (^GSPC) declined 0.5%, erasing its recent record high, while the tech-heavy Nasdaq Composite (^IXIC) also lost 0.5%.
Concerns arose about upcoming headwinds for corporate America after Walmart exceeded quarterly profit expectations but issued cautious guidance for fiscal year 2026. Walmart's shares plummeted over 6%. The downturn in Walmart's stock, coupled with approximately 4% declines in Goldman Sachs (GS) and JPMorgan (JPM), weighed heavily on the Dow.
President Trump's tariffs present an ongoing challenge, prompting companies like General Motors (GM) to consider significant business adjustments. The latest proposal, an 8% reduction in Pentagon spending, sent shares of Palantir (PLTR) down about 5%.
Markets remain apprehensive about Trump's next moves, particularly following a clash with Ukraine's president that amplified geopolitical concerns. Gold (GC=F) reached a fresh record high as investors sought refuge from risk.