US Stocks Fall as Investors Digest Walmart Earnings, Trump Policies
On Thursday, US stocks retreated as investors scrutinized Walmart's (WMT) earnings and navigated the implications of President Trump's planned tariffs and policy shifts.
The Dow Jones Industrial Average (^DJI) plunged over 500 points, or approximately 1.2%. The S&P 500 (^GSPC) dipped 0.7%, retreating from its consecutive record closes on Wednesday, while the tech-heavy Nasdaq Composite (^IXIC) lost around 0.8%.
Concerns mounted over the outlook for corporate America after Walmart released a pessimistic 2025 outlook. Although the retail behemoth's profit and revenue met expectations, its shares slid by approximately 6%.
Trump's tariffs, which have prompted companies like General Motors (GM) to consider significant business changes, pose a looming challenge. The latest in his policy overhaul is an intended 8% reduction in military spending, which weighed on Palantir's (PLTR) stock.
Markets were already cautiously awaiting Trump's next move, as a clash with Ukraine's president brought geopolitical concerns to the forefront. Gold (GC=F) surged to a new record high as investors grew risk-averse.
Meanwhile, the Federal Reserve's cautious stance in the wake of White House policy decisions dampened market sentiment, eroding investor confidence in the likelihood of interest rate cuts.
Other key points:
* Consumer Discretionary (XLC) and Financials (XLF) sectors led market losses in early trading.
* Despite earnings beating expectations, Walmart's conservative outlook weighed on its shares.
* President Trump's evolving tariff policies are being closely evaluated by industries across the board.
* Alibaba Group (BABA) shares soared 9% after exceeding revenue estimates and highlighting its AI push.
* Gold hit a fresh record high amid geopolitical tensions and risk-averse investor behavior.