Stock Market Today: S&P 500, Dow, Nasdaq Slip as Walmart Sinks on Cautious Outlook
US stocks pulled back on Thursday as investors scrutinized Walmart’s (WMT) outlook and assessed the impact of President Trump’s planned tariffs and policy shifts. The Dow Jones Industrial Average (^DJI) fell about 500 points, or around 1.1%. The S&P 500 (^GSPC) dropped 0.5%, coming off its second record close in a row on Wednesday, while the tech-heavy Nasdaq Composite (^IXIC) backed off about 0.5%. Worries grew about coming headwinds for corporate America after Walmart beat on quarterly profit, but issued cautious 2026 fiscal year guidance. Shares of the retail giant tumbled about 6%.
One looming challenge is Trump’s tariffs, which have prompted the likes of General Motors (GM) to consider big changes to their business. The latest in his policy overhaul is a planned 8% cut in Pentagon spending, which dragged on Palantir’s (PLTR) stock down about 6%. Markets were already warily waiting for Trump’s next move, after a clash with Ukraine’s president put geopolitical fears front of mind. Gold (GC=F) hit a fresh record high as investors lost appetite for risk.
Potential Trump Policy Disruptions ‘May Not Be Priced In’ to Stock Market Rally, Citi Says
Uncertainty around potential policy changes from President Trump has done little to deter the stock market rally in 2025 with the S&P 500 sitting just below its latest record high reached on Wednesday. But some on Wall Street are growing concerned that much of the positive news surrounding Trump’s impending policies could be priced in, leaving more room for disappointment than an upside surprise once more clarity on what’s next in Washington is provided.
“S&P 500 price action signals that investors continue to view a “pro-business” bias to the platform,” Citi US equity strategist Scott Chronert wrote in a note. “We don’t disagree but also argue that related policy disruptions to fundamentals may not yet be priced in.” Chronert added that there hasn’t been a significant change to their full view, which includes a year-end target of 6,500, but for now his team sees “more near-intermediate term downside risk to Trump policy effects than upside opportunity.”
CEO Confidence Hits 3-Year High
Chief executives haven’t been this confident in their business outlook in three years. Data released Thursday showed the Conference Board’s measure of CEO confidence increased by nine points in the first quarter of 2025 to a reading of 60, its highest level in three years. The Conference Board added that the move above 50 indicates a shift from “cautious optimism” to “confident optimism” among business leaders. The survey included responses from 134 US CEOs and was conducted between Jan. 27 and Feb. 10.
“The improvement in CEO Confidence in the first quarter of 2025 was significant and broad-based,” Stephanie Guichard, senior economist of global indicators at the Conference Board said in the release. “All components of the Measure improved, as CEOs were substantially more optimistic about current economic conditions as well as about future economic conditions — both overall and in their own industries.”
A Tough Day for Some 2025 Stock Market Leaders
After hitting a record-high on Wednesday, risk-off sentiment has swept the market on Thursday and some of 2025’s biggest winners are feeling the pain the most. Shares of Intel (INTC), Crowdstrike (CRWD) and Palantir (PLTR) — which had all experienced recent rallies and were among the top 10 performers in the S&P 500 in 2025 — were all off 3% or more. The Financials sector (XLF), among the top gaining sectors in the S&P 500 for the year, led the losses among the 11 sectors on Thursday, falling more than 2%. Goldman Sachs (GS), JPMorgan (JPM) and Morgan Stanley (MS) were all off more than 4%. All three stocks had been up at least 10% this year.
Energy Stocks Lead Year-to-Date as Natural Gas Prices Soar
Thanks to natural gas, energy stocks have been outperforming other sectors and the broader market. On Thursday the S&P 500 Energy ETF (XLE) was up more than 7% year-to-date, compared to the broad-based index’s rise of 3.5% during the same period. “The energy strength is in natural gas (boosted by cold weather),
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