US Stocks Pull Back Amid Concerns and Cautious Forecast

Major US stock indices experienced a downturn on Thursday as investors dissected Walmart's financial projections and evaluated the potential consequences of President Trump's proposed tariffs and policy shifts. The Dow Jones Industrial Average (^DJI) plunged roughly 450 points, or approximately 1%. The S&P 500 (^GSPC) fell 0.5%, retreating after reaching its second consecutive record high on Wednesday, while the tech-heavy Nasdaq Composite (^IXIC) also lost around 0.5%.

Walmart's Forecast Raises Concerns

Worries over corporate America's future prospects intensified after Walmart reported a quarterly profit exceeding expectations but issued a conservative outlook for the 2026 fiscal year. The retail giant's shares plummeted more than 6%. Walmart's decline, coupled with similar drops of about 4% in Goldman Sachs (GS) and JPMorgan (JPM), weighed heavily on the Dow.

Trump's Policies Pose Challenges

Trump's proposed tariffs have emerged as a looming concern, prompting companies like General Motors (GM) to contemplate significant business changes. The latest development in his policy overhaul is a planned 8% reduction in Pentagon spending, which sent shares of Palantir (PLTR) down by approximately 5%. Markets were already cautiously awaiting Trump's next move, as his clash with Ukraine's president has heightened geopolitical fears.

Gold Rises as Safe Haven

Gold (GC=F) attained a new record high as investors sought safer investments amid risk aversion.

Rivian Reports Positive Earnings

Electric vehicle manufacturer Rivian reported a "gross profit" of $170 million for the fourth quarter, primarily driven by lower variable costs and enhanced revenue per unit delivered. The company anticipates further losses in 2025, but at a rate lower than the previous year.

CEO Confidence at Three-Year High

A survey conducted by the Conference Board revealed that CEO confidence in the business outlook surged by nine points during the first quarter of 2025, reaching its highest level in three years. This optimism extends to current and future economic conditions within their own industries.

Energy Stocks Lead the Way

Energy stocks have outperformed other sectors and the broader market year-to-date, particularly due to rising natural gas prices. As of Thursday, the S&P 500 Energy ETF (XLE) had climbed over 7% compared to the index's 3.5% gain.

Alibaba Bets on AI

Chinese tech giant Alibaba announced an aggressive investment in AI, resulting in a 9% surge in its US-listed stock. The company highlighted "robust" momentum in AI-related products, with revenue growing at triple-digit rates for six consecutive quarters.

Carvana's Stock Falls Despite Earnings Beat

Online car retailer Carvana experienced a decline in its stock price despite surpassing revenue and profit estimates in its earnings report.

Delta Offers Compensation to Affected Passengers

Delta Air Lines offered $30,000 to each passenger aboard a flight that crash-landed in Toronto, with no strings attached. The payment does not limit passengers' ability to file lawsuits against the airline.

Palantir Declines on Pentagon Spending Cuts

Palantir stock continued its downward trend on concerns over Pentagon spending reductions. The software contractor's shares fell by over 11% amid reports of an 8% budget cut over the next five years.