Wall Street Tumbles as Walmart’s Weak Outlook Sparks Consumer Demand Fears

Wall Street declined as weak sales and profit forecasts from Walmart raised concerns about consumer demand, triggering a broad market selloff. The Dow fell over 1%, while the S&P 500 and Nasdaq also ended lower, snapping recent gains. Gold surged to a record high as investors sought safe-haven assets amid economic uncertainty.

Wall Street Tumbles as Walmart’s Weak Outlook Sparks Consumer Demand Fears

U.S. stocks closed lower on Thursday as investor sentiment took a hit from weak guidance by Walmart and ongoing tariff concerns. The Dow Jones Industrial Average saw the biggest decline, dropping 1.01%, while the S&P 500 ended a two-day streak of record highs.

Walmart, the world’s largest retailer, reported fiscal year sales and profit forecasts that fell short of expectations, raising concerns about weakening consumer demand. This led to a 6.5% drop in Walmart’s stock, with other major retailers like Target and Costco also experiencing losses of 2.0% and 2.6%, respectively.

The market was further pressured by new tariff announcements from President Donald Trump, adding to investor uncertainty. Meanwhile, economic data indicated a stable U.S. economy, but some economists warned of potential labor market disruptions following mass layoffs of federal employees under Elon Musk’s Department of Government Efficiency (DOGE).

Amid these concerns, gold prices surged to a record high, reflecting a shift toward safer assets.

U.S. stocks declined on Thursday as concerns over tariffs and a disappointing outlook from Walmart weighed on investor sentiment.

A broad selloff pushed all three major stock indexes into the red, with the Dow Jones Industrial Average seeing the sharpest decline. The S&P 500 ended its two-day streak of record-high closes. Meanwhile, gold prices surged to an all-time high, reflecting a shift toward safer investments amid growing economic uncertainty.

Walmart, the world’s largest retailer, issued a weaker-than-expected sales and profit forecast for the current fiscal year, signaling potential softness in consumer demand. “With consumer spending driving 70% of the U.S. economy, Walmart’s cautious outlook raised concerns about broader consumer health,” said Robert Pavlik, senior portfolio manager at Dakota Wealth. Walmart’s stock dropped sharply, with losses extending to other major retailers like Target and Costco.

The company’s results also hinted at challenges stemming from President Donald Trump’s expanding list of tariffs, which were recently extended to include lumber, automobiles, semiconductors, and pharmaceuticals. “Tariffs remain a highly uncertain factor,” noted Mike Dickson, head of research at Horizon Investments, questioning their long-term impact on businesses and trade.

Despite recent economic data showing resilience in jobless claims and factory activity, some economists warn of potential labor market disruptions following mass layoffs of federal employees under Elon Musk’s Department of Government Efficiency (DOGE).

By the close, the S&P 500 had fallen 0.43% to 6,117.63, the Nasdaq Composite dropped 0.47% to 19,962.03, and the Dow lost 1.00%, ending at 44,180.80.

Among individual stocks, Palantir Technologies declined following reports of possible Pentagon budget cuts for 2026. Meanwhile, Alibaba’s U.S.-listed shares gained after surpassing revenue expectations for its third quarter. Hasbro also saw an uptick after exceeding profit and revenue estimates, while medical device maker Baxter International rose on a stronger-than-anticipated 2025 profit forecast.

Wall Street declined on Thursday as concerns over tariffs and a weaker-than-expected outlook from Walmart weighed on investor confidence.

A broad selloff sent all three major U.S. stock indexes lower, with the Dow dropping more than 1% and the S&P 500 set to break its two-day streak of record-high closes. Investors sought safe-haven assets, driving gold prices to a record high.

Walmart, the world’s largest retailer, issued fiscal year sales and profit projections that fell short of analysts’ expectations, indicating potential weakness in consumer demand. “Walmart primarily serves consumers most affected by inflation, and the company has seen strong demand,” said Mike Dickson, head of research at Horizon Investments. “Their cautious forecast, coupled with last week’s disappointing retail sales data, raises concerns about consumer strength.”

The retailer’s stock dropped 6.5%, with other major chains like Target and Costco losing 1.8% and 2.2%, respectively.

Walmart’s results also provided insights into the potential impact of President Donald Trump’s expanding tariff policies, which were recently broadened to include lumber, automobiles, semiconductors, and pharmaceuticals. “Tariffs remain a major source of uncertainty,” Dickson added. “Are they a negotiation tactic, or will they have long-term consequences?”

Despite economic indicators such as jobless claims and factory activity pointing to stability, some economists warn of potential disruptions in the labor market due to mass layoffs of federal employees under Elon Musk’s Department of Government Efficiency (DOGE).

By the close, the Dow Jones Industrial Average fell 1.28% (572.12 points) to 44,055.89, the S&P 500 declined 0.67% (40.99 points) to 6,103.15, and the Nasdaq Composite lost 0.71% (141.59 points) to 19,914.89.

Among S&P 500 sectors, financials recorded the steepest decline, while energy stocks saw the largest gains.

Shares of Palantir Technologies fell 6.9% after the Pentagon announced possible budget reductions for 2026. Meanwhile, Alibaba’s U.S.-listed shares surged 8.2% following better-than-expected third-quarter revenue. Hasbro gained 13.8% after exceeding quarterly profit and revenue estimates, while medical device maker Baxter International rose 8.5% on an improved 2025 profit forecast.

Market breadth showed declining stocks outpacing advancing ones by a 1.44-to-1 ratio on the NYSE and a 1.85-to-1 ratio on the Nasdaq. The S&P 500 recorded nine new 52-week highs and three new lows, while the Nasdaq saw 50 new highs and 119 new lows.