US stocks fell on Thursday after Walmart Inc.’s largest retailer warned that 2025 will be a roller-coaster ride and said it expects sales to slow this year now that consumers are tapped out.
The Dow Jones Industrial Average fell 450 points on Thursday after Walmart Inc. (WMT) forecast lower-than-expected sales. The S&P 500 lost 0.4%. The tech-heavy Nasdaq lost 0.5%. Bank stocks also fell significantly, with JPMorgan Chase and Goldman Sachs closing down nearly 4%.
Walmart stock falls after it reported fourth-quarter earnings of 66 cents per share. While that was higher than Wall Street estimates, the company’s forward guidance for the fiscal year disappointed investors. Management said net sales for the coming year would grow 3-4%, disappointing analysts who were expecting a figure closer to 5%.
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Years of higher inflation and elevated interest rates continue to weigh on American shoppers, a picture that becomes more complicated if President Donald Trump implements the slew of tariffs he has promised.
In the first month of his new presidency, Donald Trump introduced a 10% across-the-board tariff on goods coming from China and a 25% tariff on all steel and aluminum imports. He has promised to impose tariffs on Mexico and Canada starting in March and has directed his economic team to study “reciprocal tariffs” on all trading partners.
Walmart fell 6.2 per cent after the world’s largest retailer said sales for the fiscal year ending January 2026 will be lower than forecast, as it missed forecasts. Walmart stock was trading at The current price of WMT is 97.21 USD, down 6.41 per cent.
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Apart from Walmart, the market is also reacting to Trump’s announcement on Wednesday that he will impose new tariffs in the next month or so, covering forest products in addition to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals. He also announced and then delayed by a month 25 percent tariffs on goods coming from Mexico and non-energy imports from Canada.
On Friday, KeyBanc Capital Markets adjusted its outlook on Walmart Inc. (NYSE:WMT), raising the retail giant’s price target to $105 from $100 while maintaining an overweight rating. The move follows Walmart’s fourth-quarter earnings that beat expectations, reflecting broad market share gains and positive underlying trends.
According to data from InvestingPro, Walmart stock has returned 69.9% over the past year, although current valuation metrics suggest the stock is trading at a relatively high P/E ratio of 40.16.
About Walmart Inc.
Walmart Inc. stock information by Barron’s. Walmart, Inc. engages in the retail and wholesale business. The company offers an assortment of goods and services at everyday low prices. It operates through the following business segments: Walmart U.S., Walmart International and Sam’s Club. The Walmart U.S. segment operates as a mass merchant of consumer products operating under the Walmart and Walmart Neighborhood Market brands, including walmart.com.
The Walmart International segment includes wholly owned subsidiaries in Canada, Chile, China and Africa and majority-owned subsidiaries in India, as well as Mexico and Central America. The Sam’s Club segment manages membership-only warehouse clubs and operates samsclub.com. The company was founded on July 2, 1962 by Samuel Moore Walton and James Lawrence Walton and is headquartered in Bentonville, AR.
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