U.S. stocks continued to decline, with the Dow Jones Industrial Average falling over 300 points. The S&P 500 retreated after hitting a record high. Retail giant Walmart (WMT, Financial) saw its stock fall sharply after releasing a lower-than-expected earnings forecast, dampening market sentiment.
The Dow dropped 319.27 points, or 0.72%, to 44,308.32. The Nasdaq fell 194.43 points, or 0.97%, to 19,861.82, while the S&P 500 declined 42.82 points, or 0.70%, to 6,101.33. Walmart's (WMT, Financial) forecast for 3% to 4% sales growth this fiscal year and below-expectation earnings for 2026 overshadowed its better-than-expected fourth-quarter results.
Investors are concerned about the impact of President Trump's proposed tariffs and protectionist policies, which could drive inflation. Additionally, high valuations of tech giants are under scrutiny, with four of the seven major companies seeing declines. Analysts warn that speculative investments in volatile stocks by retail investors could signal a market warning.
Federal Reserve meeting minutes indicated officials agreed to pause rate cuts until inflation decreases further, which might boost U.S. Treasury yields and the dollar, potentially limiting gold's upside.
In individual stock news, Nvidia's (NVDA) Blackwell GPU demand remains strong despite AI industry disruptions. Meta Platforms achieved a record 20-day stock increase, while Microsoft unveiled a new quantum chip and AI tools. Google launched an AI tool for biomedical scientists, and Alibaba exceeded market expectations with its third-quarter revenue.
