Wall Street Closes Lower as Investors Await Powell’s Speech
Walmart tumbled nearly 5% after delivering mixed second-quarter results: revenue topped expectations, but earnings missed forecasts.
Quick overview
- U.S. stocks fell on Thursday, influenced by disappointing results from Walmart and weaker labor market data.
- The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all ended the day lower.
- Weekly jobless claims rose to 235,000, exceeding forecasts and marking the largest increase since late May.
- Walmart's shares dropped nearly 5% despite raising its full-year sales and profit outlook, as it reported mixed quarterly results.
U.S. stocks retreated on Thursday in a cautious session marked by disappointing quarterly results from Walmart and weaker labor market data. The three major Wall Street indexes ended the day lower as investors digested the latest economic signals while awaiting a key speech from Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average slipped 0.34% to 44,785.50, the S&P 500 fell 0.40% to 6,370.17, and the tech-heavy Nasdaq Composite declined 0.34% to 21,100.31.
On the labor front, weekly jobless claims rose by 11,000 to 235,000—the largest increase since late May—surpassing forecasts of around 225,000.
Walmart shares sank 4.49% after the retailer reported solid sales and revenue growth but fell short of profit expectations due to higher tariff-related costs. Attention now shifts to the annual Jackson Hole symposium, where Powell is expected to provide clues on the Fed’s policy path and the outlook for interest rates.
Only two of the S&P 500’s eleven sectors finished higher—materials and energy—while consumer staples (-1.18%) led declines, weighed down by Walmart’s drop. Within the Dow, Walmart was the biggest laggard, followed by IBM (-1.30%).
Earnings Season Continues
Walmart tumbled nearly 5% after delivering mixed second-quarter results: revenue topped expectations, but earnings missed analysts’ forecasts. The retail giant nevertheless raised its full-year sales and profit outlook, signaling confidence in its growth trajectory despite near-term headwinds.
Walmart’s low-price strategy and dominance in the grocery segment position it to weather economic turbulence better than many peers. The company has beaten earnings estimates for 11 consecutive quarters, according to LSEG, boosting its valuation even as other consumer staples firms have struggled this year.
This week also saw results from other major retailers: Home Depot (-1%) on Tuesday and Target (-1.5%) on Wednesday.
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