4:12pm: Dow dips

Stocks finished Thursday’s session on the back foot as investors weighed up disappointing earnings from retail bellwether Walmart and Trump’s planned tariffs.

This was led by a 1.7% decline in the Dow Jones to 44,150 points.

The Nasdaq shed 0.5% at 19,963 points while the S&P 500 fell 0.4% from yesterday’s record high to 6,117 points.

3:32pm: Stocks on the move

Immunic shares gained more than 12% after the company released data that supports the potential of its investigational therapeutic IMU-856 as an oral treatment for weight management.

Alibaba’s US-listed shares were up 8.9% at about $137 as the Chinese eCommerce firm’s quarterly revenue and profit topped expectations.

Shares of Shake Shack also added 12.5% on a quarterly earnings beat.

On the other hand, shares of used car retailer Carvana fell 12.3% as it posted falling profit margins and weaker-than-expected wholesale sales for Q4.

2:35pm: Still bullish on Walmart

Walmart shares had lost around 6.4% by Thursday afternoon following disappointing guidance.

While Walmart's guidance for fiscal 2025 implies EPS growth of around 2% at the midpoint, analysts at Jefferies believes these numbers will continue to trend higher. The stock has gained approximately 16% year-to-date but is seeing some profit-taking today.

However, analysts anticipate the upward trajectory will resume following this reset and continue to recommend buying shares.

Jefferies analysts reaffirmed their Buy rating on Walmart, maintaining the retailer as their top pick, despite a slight pullback in the stock.

12:45pm: Markets retreat

Markets are trading lower at midday, with the Dow leading losses.

The index has lost 575 points, or 1.3%, as concerns over consumer spending and broader economic uncertainties pressure markets.

The S&P 500 and Nasdaq are both down 0.7%.

The downturn is being driven largely by Walmart’s cautious outlook, which has raised concerns about the retail sector’s strength. The retail giant, a component of the Dow, is seeing its shares tumble after issuing weaker-than-expected guidance for the full year. The outlook has sparked a broader selloff in retail stocks, with Amazon and Target also trading lower.

Elsewhere, Palantir is under pressure as its shares continue to decline amid worries about potential defense spending cuts. Cruise operators like Royal Caribbean are also falling following commentary on potential US tax implications. Meanwhile, Hasbro is one of the few bright spots in the market, with shares rising after the toymaker raised its outlook and announced a new strategy to drive sales.

Adding to market concerns, a surprising drop in key economic indicators has dampened investor sentiment, while ongoing geopolitical tensions have increased demand for safe-haven assets like gold. Uncertainty over potential additional tariffs, as referenced by former President Trump, is also weighing on sentiment.

Tomorrow’s jobs report could provide fresh insights into the strength of the labor market and influence the Federal Reserve’s next policy moves.

11:40am: Gold prices near $3,000

Gold prices have hit a record high amid safe haven buying.

"The gold price hit another record high amid geopolitical uncertainty while the oil price stemmed an initial decline and extended gains for a fourth straight day as supply concerns outweighed another rise in US stockpiles," IG's Axel Rudolph commented Thursday.

Rudolph added that the $3,000 mark is "firmly in sight."

"US stock indices dropped as investor sentiment remained pressured by economic and geopolitical concerns, particularly fears over trade tariffs and a hawkish US Fed policy," Rudolph noted.

10:45am: Fed caution keeps dollar range-bound

The US dollar remained range-bound as markets evaluated the latest FOMC minutes and trade policy updates.

"The minutes reaffirmed Chairman Jerome Powell's cautious stance, emphasizing that inflation risks and resilient economic growth support keeping interest rates on hold," Bas Kooijman, CEO and Asset Manager of DHF Capital S.A said.

A potential US-China trade deal, hinted at by President Trump, could ease tensions and weigh on the dollar, according to Koojiman.

Meanwhile, US Treasury yields dipped slightly, with the 10-year note near 4.5%, but may stay supported by the Fed’s hawkish outlook. Upcoming PMI and consumer sentiment data could shift expectations, potentially pressuring yields and the dollar lower if an earlier rate cut gains traction.

9.53am: Wall Street heads lower as Walmart weighs on Dow

US stocks kicked off Thursday’s session on the back foot, with the Dow Jones leading the drop on Wall Street as Walmart Inc was among those to weigh on the index.

Dow fell 0.4% following the opening bell, as the S&P 500 and Nasdaq dropped 0.3% and 0.1% respectively.

Walmart, a constituent of the 30-company strong Dow, was among the fallers, dropping 6.1% as cautious guidance overshadowed expectation-beating fourth quarter figures.

Net sales were seen climbing 3.0% to 4.0% over the coming year, it said, after a 5.6% increase to US$684.2 billion for the year just gone.

Elsewhere, Epam Systems Inc was among the initial losers on the back of results, dropping 11.7%, while Hasbro Inc surged 11.1% after topping estimates with fourth quarter figures.

**7.14am: S&P 500 to fall from record in negative start on Wall Street ** Mood on Wall Street appeared subdued ahead of Thursday’s session after Federal Open Market Committee meeting minutes firmed up caution towards interest rate cuts ahead.

Futures had the S&P 500 dropping 0.3% ahead of the bell, after the index notched up yet another record on Wednesday.

The Nasdaq and Dow Jones were each also seen falling 0.3% in the meantime.

Wednesday had seen FOMC minutes for its last meeting, when interest rates were held, published to show caution among central bankers.

Members had flagged “upside risks to the inflation outlook,” namely as the impact of sweeping tariffs under president Donald Trump loomed.

Source: Proactive Investors