Dow Jones Sinks 600 Points: Walmart’s Weak Outlook Hits Retail and Tech Stocks

Wall Street Slips as Tariff Concerns Weigh; Walmart Sinks on Weak Outlook

Wall Street’s main indexes fell Thursday as traders reacted to fresh tariff threats from President Donald Trump and a disappointing sales forecast from retail giant Walmart. The Dow Jones Industrial Average dropped 607 points, or 1.3%, while the S&P 500 and Nasdaq Composite both slid 0.8%, retreating from record highs set earlier this week.

At 16:44 GMT, the Dow Jones Industrial Average is trading 43996.58, down 631.01 or -1.41%.  The S&P 500 Index is at 6092.66, down 51.49 or -0.84% and the Nasdaq Composite is trading 10885.37, 170.89 or -0.85%.

How Did Major Indexes Perform?

The Dow’s losses were led by Walmart, which tumbled over 6% following its downbeat fiscal 2026 sales forecast. The retailer projected sales growth between 3% and 4%, below analyst expectations, suggesting inflation-strained consumers may pull back spending. Broader market sentiment also took a hit, with the S&P 500’s consumer staples sector leading declines, down 1.8%. Nine of the S&P 500’s 11 sectors traded lower, highlighting the cautious mood on Wall Street.

What Impact Did Tariff Threats Have?

Trump’s renewed tariff threats added to market jitters. On Wednesday, he announced plans for fresh tariffs on lumber and forest products, expanding previously stated duties on cars, semiconductors, and pharmaceuticals. Since his return to office, Trump has imposed a 10% tariff on all Chinese imports and unveiled plans for 25% tariffs on Mexican and Canadian goods, which were recently delayed. These policies have raised inflationary concerns at the Federal Reserve, as reflected in minutes from the central bank’s January meeting.

Which Stocks and Sectors Were Hit Hardest?

Walmart’s bleak forecast pressured other retail stocks, with Target, Costco, and Dollar Tree slipping between 1.2% and 1.8%. Megacaps Tesla and Amazon both dropped over 0.7%, while Palantir Technologies fell 7.8% amid news of potential Pentagon budget cuts. Financial stocks were also under pressure, with Goldman Sachs, Morgan Stanley, and JPMorgan Chase each losing at least 3%.

Were There Any Bright Spots?

Not all was bleak. Alibaba Group surged 13.4% after beating revenue estimates, and Hasbro jumped 9.7% on strong quarterly results. Baxter International climbed 6.7% following an optimistic 2025 profit forecast. In the Dow, Merck, Johnson & Johnson, and Microsoft posted gains, providing a modest lift to the healthcare and technology sectors.

Market Forecast: Bearish Tone Likely Into the Close

Traders should keep a close eye on updates to Trump’s trade policies and their economic impact, as well as upcoming economic data that could influence sentiment.

Atlanta Fed President Raphael Bostic’s caution on inflation adds to the risk-off mood, with the Dow’s 600+ point drop and weakness across nine of the S&P 500’s 11 sectors highlighting a lack of buying support.

Key sectors like consumer staples, financials, and discretionary stocks remain under pressure.

Unless a surprise catalyst emerges, continued selling pressure is expected into the close, with traders likely shifting to defensive positions.

More Information in our Economic Calendar.