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Stocks retreated 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 Industrials slumped 450.94 points, or 1%, Thursday to 44,176.65
The much-broader index shed 26.63 points to 6,117.52
The NASDAQ fell 83.89 points to 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 analyst expectations. The weak guidance overshadowed fiscal fourth-quarter earnings that topped estimates.
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 more than 5%, 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 for 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
U.S. data showed weekly jobless claims for the week ended February 15 stood at 219,000, compared with an estimate of 215,000
Prices for the 10-year Treasury gained slightly, lowering yields to 4.51% from Wednesday’s 4.53%. Treasury prices and yields move in opposite directions.
Oil prices progressed 28 cents to $72.53 U.S. a barrel.
Prices for gold moved higher $17.50 an ounce to $2,953.60 U.S.
