Walmart’s disappointing profit forecast and broader economic concerns are driving the stock market lower today. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all experienced significant declines in morning trading.
Walmart’s stock fell 6.2% despite reporting stronger than expected profits for the last quarter. The retail giant issued a weaker than anticipated profit forecast, citing high inflation and the potential impact of tariffs as key factors impacting consumer spending.
This negative outlook rippled through the retail sector, pulling down shares of other major retailers like Costco, Target, and Amazon. These declines contributed significantly to the overall market downturn.
Palantir Technologies also experienced a substantial drop, falling 10% following a previous day’s decline of 10.1%. This decrease was attributed to proposed defense spending cuts by the U.S. government, a significant source of revenue for the software company.
Despite the overall negative trend, some companies showed positive performance. Baxter International surged 8.5% after exceeding profit expectations, driven by strong performance in its pharmaceuticals and medical products divisions. Similarly, Shake Shack saw an 11.8% jump after reporting better than expected profits.
Mixed economic data further contributed to market uncertainty. While a report indicated an increase in unemployment benefit applications, suggesting a potential rise in layoffs, the overall number remains historically low. Additionally, manufacturing growth in the mid-Atlantic region slowed more than anticipated.
These economic indicators are likely to influence the Federal Reserve’s decisions on interest rates. The central bank recently paused its rate-cutting cycle, aiming to balance economic growth with concerns about inflation. Factors such as potential tariffs, immigration policies, and consumer spending could further complicate the Fed’s decision-making process.
Global markets also reflected the uncertainty, with mixed performance in Europe and declines in Asia. China’s decision to maintain its benchmark interest rate, citing financial stability concerns, contributed to a drop in Hong Kong’s Hang Seng index. These international developments further added to the downward pressure on the U.S. market.
