Stocks retreated on Thursday following two days of all-time highs for the S&P 500 as investors dumped some popular names in the wake of a lackluster forecast from retail giant Walmart that prompted questions about the outlook of the economy.
The Dow Jones Industrial Average lost 450.94 points, or 1.01%, to end at 44,176.65. The S&P 500
shed 0.43% and closed at 6,117.52, and the Nasdaq Composite dipped 0.47% and closed at 19,962.36.
Dow member Walmart dropped 6.5% after the company said it expects fiscal-year sales to grow between 3% and 4%. The company’s fiscal 2026 earnings outlook, meanwhile, was below analysts’ expectations. The weak guidance overshadowed fiscal fourth-quarter earnings that topped estimates.
“If Walmart is giving bad guidance, you should be paying attention to it,” said Tom Fitzpatrick, managing director at R.J. O’Brien & Associates. “Perhaps this is suggesting that the general consumer is tapped out.”
Target and Costco each fell about 2%, following Walmart’s move, amid rising worries about the health of earnings moving forward.
Retail investor favorite Palantir also pulled back 5.2%, adding to a decline of more than 10% so far this week. The move comes after a report said Defense Secretary Pete Hegseth told department officials to brace for budget cuts. A new trading plan from CEO Alex Karp also drove the stock lower.
Worries over the state of the economy also weighed on the market after The Conference Board said its Leading Economic Index unexpectedly contracted in January. Treasury yields fell, while bank stocks such as Goldman Sachs and Morgan Stanley slid.
