Wall Street Falls As Walmart Forecast Raises Consumer Demand Concerns
Wall Street closed lower on Thursday after Walmart’s weaker-than-expected earnings forecast raised concerns about consumer spending, while ongoing tariff uncertainty added to investor jitters.
The Dow Jones Industrial Average dropped 450.94 points, or 1.01%, to 44,176.65, while the S&P 500 declined 0.43% to 6,117.52, snapping a two-day record streak. The Nasdaq Composite fell 0.47% to 19,962.36.
Walmart, the world’s largest retailer, reported a 6.5% drop in shares after issuing a full-year sales and profit outlook below analysts’ expectations. The downbeat guidance weighed on other retail stocks, with Target sliding 2.0% and Costco losing 2.6%.
“With the consumer driving 70% of the US economy, Walmart’s weak guidance gave rise to some nervousness regarding consumer health and spending,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.
Market sentiment was further pressured by US tariff concerns, as new levies on lumber, autos, semiconductors, and pharmaceuticals added uncertainty. Gold prices surged to a record high, reflecting a shift toward safe-haven assets.
Among individual stocks, Alibaba Group jumped 8.1% after posting stronger-than-expected third-quarter revenue, while Baxter International rose 8.5% on an upbeat 2025 profit forecast. Hasbro surged 13% after beating earnings estimates, but Palantir Technologies slumped 5.2% following reports of potential Pentagon budget cuts.
Declining issues outnumbered advancers by 1.13-to-1 on the NYSE and 1.69-to-1 on the Nasdaq. US trading volume stood at 16.36 billion shares, above the 20-day average of 15.57 billion.
Reuters
