Dow Jones Drops 150 Points: Walmart’s Weak Outlook and Fed Minutes Rattle Markets

Retail stocks broadly struggled, with Walmart leading the decline. However, Shake Shack surged 10.8% after posting strong quarterly earnings and expanding its footprint with 28 new locations. Tech shares saw mixed performances; Alibaba jumped over 11% on earnings that exceeded forecasts, while Carvana fell 8% due to lower-than-expected retail gross profit per unit.

What Did the Fed Minutes Reveal?

The Federal Open Market Committee’s (FOMC) minutes showed policymakers are cautious about inflation, citing risks from Trump’s trade and immigration strategies. While the Fed kept interest rates steady between 4.25% and 4.5%, officials emphasized the need for clear disinflation signals before any further rate cuts. The central bank also debated slowing its quantitative tightening program, with liquidity concerns emerging as a key issue.

What Should Traders Watch Next?

With inflation concerns persisting, traders should monitor economic data closely, including upcoming inflation and employment reports. The potential for new tariffs and the Fed’s stance on quantitative tightening could add volatility to markets. Safe-haven assets like gold may gain traction if inflation risks escalate, while defensive sectors could offer relative stability.

Overall, traders should remain cautious, balancing risk exposure with strategic defensive plays as market conditions evolve.

More Information in our Economic Calendar.