S&P 500, Dow, Nasdaq slip as Walmart sinks on cautious outlook

US stocks pulled back on Thursday as investors scrutinized Walmart (WMT) earnings and trod carefully amid the fallout from President Trump’s planned tariffs and policy shifts.

The Dow Jones Industrial Average (^DJI) fell more than 500 points, or around 1.2%. The S&P 500 (^GSPC) dropped 0.7%, coming off its second record close in a row on Wednesday, while the tech-heavy Nasdaq Composite (^IXIC) backed off about 0.8%.

Worries grew about coming headwinds for corporate America after Walmart put out a downbeat 2025 outlook. While the retail giant’s profit and revenue met high expectations, its shares slid roughly 6%.

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One looming challenge is Trump’s tariffs, which have prompted the likes of General Motors (GM) to consider big changes to their business. The latest in his policy overhaul is a planned 8% cut in military spending, which dragged on Palantir’s (PLTR) stock.

Markets were already warily waiting for Trump’s next move, after a clash with Ukraine’s president put geopolitical fears front of mind. Gold (GC=F) hit a fresh record high as investors lost appetite for risk.

Meanwhile, the Federal Reserve’s caution in light of White House policy dragged on the mood, as investors lost faith in the prospects for interest rate cuts.

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Consumer Discretionary stocks and Financials leads losses

The Consumer Discretionary (XLC) and Financials (XLF) sectors led market losses in early trading on Thursday.

Shares of Walmart (WMT) slid more than 5% after the retail giant issued a cautious outlook. Other consumer oriented stocks fell along with Walmart, including Target (TGT) Costco (COST), and BJ’s Wholesale (BJ).

Healthcare (XLV) and Energy (XLE) stocks were in green territory as the major averages sank.
Dow, S&P 500 slide as Walmart shares sink

The major averages opened lower on Thursday as shares of Walmart (WMT) slid more than 4% after the company issued a conservative outlook and investors digested the potential impact of President Trump’s tariff and government overhaul policies.

The S&P 500 (^GSPC) edged back 0.2% from its record closing high. The Dow Jones Industrial Average (^DJI) dropped 0.3% while the tech-heavy Nasdaq Composite (^IXIC) also backed off nearly 0.2%.

Walmart’s quarterly profit and revenue met high expectations, but the company’s outlook for 2025 was putting pressure on the stock on Thursday morning.

For its fiscal year 2026, Walmart issued conservative guidance, as it has done for the last two years. The company anticipates net sales to increase between 3% to 4%.

Meanwhile industries across the board are assessing what President Trump’s evolving tariff policies will mean for business.

On Thursday shares of software contractor Palantir (PLTR) extended declines from the previous session following a report of an 8% cut in Pentagon spending over the next five years.
Carvana stock slides after run-up, despite earnings beat

Online car retailer Carvana (CVNA) posted stronger-than-expected revenue and profit on Wednesday as it continues to emerge from a period of turbulence.

Despite the earnings beat, investors hit the brakes on the stock. Carvana shares fell over 8% in premarket trading on Thursday, having recently hit a fresh 52-week high.

Yahoo Finance’s Pras Subramanian reports:

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Walmart stock sinks amid cautious 2025 outlook

Walmart (WMT) was the highlight of Thursday’s earnings docket, as the retailer beat on earnings and showed it continued to be a destination for inflation-weary shoppers.

But its stock was down some 8% in premarket trading as it guided cautiously for the upcoming year.

Yahoo Finance’s Brooke DiPalma reports:

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Good morning. Here’s what’s happening today.
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Bloomberg reports:

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Gold hits fresh record high as investors seek shelter

Worries about geopolitics grew after President Trump called his Ukrainian counterpart a “dictator,” driving a rush to gold and other less-risky assets on Thursday.

Bloomberg reports:

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Morgan Stanley reverses views on Chinese bear market

Morgan Stanley (MS) strategists have adopted an optimistic outlook on Chinese stocks, overturning a previously bearish view of the region. This is the latest in a wave of Wall Street support forecasting a rise driven by tech advancements in the country, specifically around AI.

Bloomberg reports:

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