U.S. stocks deepened early losses on Thursday as the Dow Jones Industrial Average dropped 400 points and the S&P 500 retreated after consecutive record closes. Market activity remains subdued, with only three of the S&P 500's 11 sectors trading higher. Meanwhile, merely seven of the 30 stocks in the Dow post gains, reflecting widespread investor caution.
Walmart (WMT, Financial) led the blue-chip decline after the retailer released its latest quarterly earnings. Investors are spooked by Walmart's disappointing profit guidance, which has been adding to an overall market pullback. Analysts stress caution in such a market where gains from initial predictions appear to now be fragmented and performances across sectors vary and are still significantly unsettled by the persistent volatility of the market.
Investors are considering how a drop in consumer confidence and cautious earnings reports could mean a long downturn. But some sectors can still be resilient, opening the door to recovery chances. Traders evaluate risks and rewards in the market as economic conditions and policy narratives evolve.
