On Thursday, U.S. stock indexes experienced a slight decline, with the S&P 500 down 0.3% in early trading, following record highs in the previous two days. The Dow Jones Industrial Average also dropped by 0.3%, losing 130 points, while the Nasdaq composite was 0.2% lower.
Walmart's stock slide of 6.2% contributed to the market's downturn, despite the retailer reporting stronger profits for the latest quarter than anticipated. The company's profit forecast for the upcoming period fell short of analysts' expectations, attributed to ongoing high inflation and the looming threat of tariffs.
Palantir Technologies also weighed on the market, declining by 6.9% following a 10.1% drop the previous day. This was in response to U.S. Defense Secretary Pete Hegseth's plan to reduce spending by $50 billion next year, impacting the software company that heavily relies on government customers.
Conversely, Baxter International saw a 5.1% increase after reporting better-than-expected profits for the latest quarter, driven by strong performance in its pharmaceuticals and medical products divisions. Similarly, Shake Shack's stock surged by 15.6% due to a robust profit report, despite challenges such as adverse weather conditions and wildfires affecting customer traffic.
In the bond market, Treasury yields slightly eased following a report indicating higher-than-expected jobless claims, hinting at a potential worsening in layoff rates. However, manufacturing growth in the mid-Atlantic region, though slower than anticipated, remained positive.
These economic indicators are likely to influence the Federal Reserve's interest rate decisions, with recent discussions focusing on the impact of proposed tariffs, immigration policies, and consumer spending on inflation. The 10-year Treasury yield fell to 4.51%, while the two-year Treasury yield remained relatively stable at 4.26%.
Global stock markets showed mixed performance, with European indexes fluctuating and Asian markets experiencing declines. Hong Kong's Hang Seng dropped by 1.6% after China maintained its benchmark interest rate unchanged to ensure financial stability, while Shanghai stocks saw a marginal decrease.
