U.S. stock futures pulled back on Thursday as investors scrutinized Walmart’s earnings and proceeded cautiously amid concerns related to President Trump’s planned policy shifts. S&P 500 futures dropped 0.3% after the benchmark fell for Wednesday’s second day in a row. Contracts on the Dow Jones Industrial Average futures and the tech-heavy Nasdaq 100 also backed off about 0.3%.
Worries grew about forthcoming challenges for corporate America after Walmart put out a downbeat 2025 outlook. While the retail giant’s earnings beat expectations and confirmed its continued attraction to inflation-weary shoppers, Walmart shares slid 8% in premarket trading due to its cautious guidance for the upcoming year. One looming challenge is Trump’s tariffs, which have prompted significant changes to business operations in various sectors.
The latest policy overhaul has stoked further uncertainty in the market. Investors also have been warily watching Trump’s geopolitical moves, which have heightened global tensions and driven a rush to safe-haven assets like gold.
Walmart’s cautious guidance impacts markets
Separately, Carvana shares fell over 8% in premarket trading. Despite the online car retailer’s stronger-than-expected revenue and profit on Wednesday, investor sentiment appeared apprehensive after a significant run-up in the stock price. In other significant earnings news, Alibaba shares surged almost 7% in premarket trading after the Chinese online retailer posted better-than-expected quarterly revenue, signaling a potential comeback.
Additionally, Morgan Stanley strategists reversed their previously bearish outlook on Chinese stocks, now adopting an optimistic view. This adjustment aligns with a broader wave of Wall Street support forecasting a rise driven by technological advancements, particularly artificial intelligence. Economic data scheduled for release today includes initial jobless claims for February 15, the Philadelphia Fed business outlook for February, and the leading index for January.
Concerns over geopolitical dynamics and Trump’s recent comments have also influenced market behavior. This is reflected in the heightened interest in gold, which hit a fresh record high as investors sought shelter from riskier assets. Investors will closely monitor how these developments, corporate earnings, and economic data will shape market movements in the coming days.
Image Credits: Photo by Marques Thomas on Unsplash
