US stocks traded lower on Thursday, with the S&P 500 slipping 0.7% after hitting a fresh all-time high the previous day, the Nasdaq shedding 0.8%, and the Dow Jones plunging 520 points.
US stocks lower, Walmart shares sink
The downturn came as investors digested corporate earnings reports and economic data, while concerns over trade policies and geopolitical tensions weighed on sentiment.
Walmart shares tumbled nearly 6% after the retail giant issued weaker-than-expected fiscal 2026 guidance, despite reporting stronger-than-anticipated Q4 earnings. The disappointing outlook raised concerns about consumer spending trends and potential margin pressures in the retail sector.
Almost all sectors traded in the red
Almost all sectors traded in the red, with financials and consumer discretionary stocks leading the declines. Banking stocks struggled amid renewed uncertainty over interest rate policy, while weakness in consumer discretionary was exacerbated by Walmart’s lackluster forecast. Energy stocks also faced selling pressure as oil prices retreated, driven by concerns over global demand and supply chain disruptions.
Meanwhile, broader investor sentiment remained under pressure due to ongoing geopolitical risks, trade tariff uncertainties, and speculation about the future direction of U.S. monetary and fiscal policy. Federal Reserve officials have reiterated their data-dependent stance on rate cuts, adding to market uncertainty about the timing and magnitude of policy easing.
Economic data
On the economic data front, weekly jobless claims climbed to 219K, exceeding market expectations of 215K, while continuing claims rose to 1.869 million. Despite the increase, the figures still suggest a resilient labor market, though investors remain cautious about potential signs of softening economic momentum.
