US stocks fall: Dow drops 0.3%, S&P 500 hits fifth losing day, Nasdaq slides as Walmart earnings miss and manufacturing surges

U.S. stock market lost ground on Thursday as investors grew uneasy ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole address. The Dow Jones Industrial Average slipped by more than 230 points, while the S&P 500 fell for a fifth consecutive session, marking its longest losing streak since spring.

The Nasdaq Composite wavered but ended slightly lower, weighed down by profit-taking in major tech names. Pressure mounted after Walmart shares tumbled nearly 5% on disappointing profit margins, sparking a broader pullback in retail stocks. At the same time, a surprise uptick in jobless claims raised fresh concerns about the labor market’s resilience.

With AI-driven stocks cooling and consumer signals turning mixed, Wall Street’s mood has shifted from confident to cautious, leaving Powell’s upcoming remarks as the next major test for market direction.

• Dow Jones Industrial Average (DJIA): Down about 230 points, slipping roughly 0.5%.
• S&P 500 Index: Fell for a fifth straight session, down around 0.3%.
• Nasdaq Composite: Edged lower by 0.1%–0.2%, showing relative resilience but still pressured.

Why is Wall Street losing momentum right now?

The U.S. stock market closed lower on Thursday, extending a cautious streak that has left investors questioning whether the summer rally is losing steam. The Dow Jones Industrial Average dropped around 230 points, the S&P 500 slipped for a fifth straight session, and the Nasdaq Composite edged down modestly after swinging between gains and losses through the day.
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Behind the declines were a mix of corporate disappointments, soft labor market data, and investor nerves ahead of Jerome Powell’s policy remarks at the Federal Reserve’s Jackson Hole symposium.

U.S. Stock Market Snapshot: Dow, S&P 500, Nasdaq

Dow Jones Industrial Average (DJIA)

• Current Level: 44,938.31
• Change: +16.04 points (+0.04%)
• Day’s Range: 44,028.94 – 44,272.75
• 52-Week Range: 44,044.95 – 44,775.47
• Recent Close: 44,175.61

S&P 500 Index (SPX)

• Current Level: 6,386.21
• Change: -0.24%
• Day’s Range: 6,343.86 – 6,408.40
• 52-Week Range: 4,835.04 – 6,481.34
• Recent Close: 6,395.78

Nasdaq Composite Index (IXIC)

• Current Level: 21,172.86
• Change: -0.67%
• Day’s Range: 21,105.69 – 21,314.95
• 52-Week Range: 18,250.71 – 21,710.67
• Recent Close: 21,314.95

Market takeaway: The Dow held slightly positive, while the S&P 500 and Nasdaq faced modest declines amid mixed corporate earnings and economic signals. Investors are watching manufacturing data and upcoming Fed guidance for clues on market direction.

Why are U.S. stocks falling today?

The sell-off was driven by a combination of factors:

1. Strong manufacturing growth – U.S. manufacturing activity hit its fastest pace since 2022, signaling sustained demand and potential inflationary pressure. The data spurred a drop in Treasuries, pushing the 10-year yield up three basis points to 4.32%. Investors now question whether the Fed can ease rates as previously expected.
2. Walmart’s earnings miss – The retail giant reported profits below expectations, even as it offered a more optimistic outlook. The result rattled investors, highlighting the delicate balance between consumer spending trends and corporate performance.
3. Fed watch ahead of Jackson Hole – Market attention is on the Fed’s annual economic symposium in Jackson Hole, where Chair Jerome Powell will speak Friday. Investors are closely watching for hints on future rate moves, with one rate cut now seen as 70% likely this year, down from near certainty last week.

What went wrong with Walmart’s earnings?

The sharpest blow came from Walmart (WMT), which tumbled 4% to 5% despite posting higher revenue and raising its full-year sales outlook. The problem wasn’t sales growth — it was profit margins. A heavier tilt toward low-margin groceries overshadowed discretionary sales, tightening profitability.

For investors, this matters because Walmart is more than just a retailer. As a consumer barometer, its results often hint at where household spending is heading. A margin squeeze suggests consumers may be stretched, even if top-line numbers look solid. That fear rippled across other retail names, dragging the consumer staples sector of the S&P 500 into the red.

Walmart (WMT):

• Shares sank nearly 5%.
• Strong revenue growth but margins weakened due to heavier grocery mix.
• Raised full-year sales outlook, but profit squeeze overshadowed guidance.
• Sparked a broader selloff in retail names.

Why are jobless claims worrying traders?

Adding to the unease, weekly jobless claims rose more than expected. While still low by historical standards, the increase suggests the labor market could be starting to soften.

The Fed has consistently tied its rate decisions to employment strength. If layoffs accelerate, policymakers may face a tougher balancing act between controlling inflation and protecting growth. For investors, this means Powell’s upcoming speech carries even more weight — every word could shift expectations for the Fed’s next move.

Nvidia (NVDA):

• Managed a small gain after recent selling pressure.
• AI-driven momentum has cooled, but still holding strong relative to peers.
• Investors cautious about stretched valuations despite long-term growth story.

Palantir (PLTR):

• Fell for a sixth consecutive session, down over 10% this week.
• Concerns over expensive valuation and reliance on government contracts.
• Represents growing skepticism in high-flying AI names.

Boeing (BA):

• Gained nearly 2%.
• Boosted by optimism over potential new aircraft deals with China.
• Strength in industrials highlighted demand recovery in global aviation.

Nordson (NDSN):

• Jumped more than 7% after beating earnings expectations.
• Positive guidance signaled resilience in industrial equipment demand.
• One of the day’s standout performers in the S&P 500.

Coty (COTY):

• Plunged nearly 20%.
• Reported weaker-than-expected results, shocking investors.
• Raised questions about brand positioning and cost pressures.

Is the AI stock rally running out of steam?

The Nasdaq avoided sharp losses but showed clear signs of fatigue. Nvidia (NVDA) managed a small gain, though its momentum has slowed after weeks of heavy selling.

More concerning was Palantir (PLTR), which slid for a sixth straight day and has shed over 10% this week. Investor concern centers on overheated valuations and reliance on government contracts, both of which look vulnerable in a cooling market.

The pullback is being read as a healthy reset in AI enthusiasm, but the danger is clear: momentum-driven traders could bail, leading to deeper declines in the sector.

How are individual sectors performing?

• Tech and semiconductors – Nasdaq 100 fell 0.3%, and the Philadelphia Semiconductor Index slid 0.3%, as investors weighed the outlook for Nvidia and other key chipmakers. Palantir Technologies aims to reverse a losing streak after recent declines.
• Retail and consumer – Walmart’s miss overshadowed broader sector gains, while WH Smith Plc slumped after an accounting error forced a profit outlook revision in North America.
• Aerospace and defense – Boeing is close to finalizing a massive aircraft deal with China, potentially ending a six-year sales drought and offering a positive counterbalance for industrial stocks.

Were there any bright spots in today’s market?

Yes. Boeing (BA) gained nearly 2% following reports of potential new aircraft orders from China — a boost for the aviation sector.

On the earnings front, Nordson (NDSN) jumped more than 7% after topping forecasts, proving that stock-picking opportunities remain even in a cautious market.

Still, these wins weren’t enough to turn sentiment. Market breadth tilted negative, showing that most sectors ended the day in the red.

What’s moving bonds and currencies?

Treasury yields rose across the board on the stronger manufacturing report:

• 10-year Treasuries: +3 bps to 4.32%
• 2-year Treasuries: +3 bps to 3.78%
• 30-year Treasuries: +3 bps to 4.92%

Global yields also moved higher:

• Germany 10-year: +3 bps to 2.74%
• UK 10-year: +5 bps to 4.72%

In currencies, the U.S. dollar gained strength:

• Bloomberg Dollar Spot Index: +0.3%
• Euro: -0.4% to $1.1607
• British Pound: -0.2% to $1.3424
• Japanese Yen: -0.6% to 148.16 per dollar

Crypto and commodities snapshot

• Bitcoin: -1.2% to $113,029
• Ether: -2.1% to $4,266
• Oil (WTI): +0.4% to $62.97 per barrel
• Gold: -0.2% to $1,342.50 per ounce

What does this mean for investors?

The market is showing caution as strong economic data conflicts with hopes for near-term rate cuts. For investors:

• Short-term volatility is likely – Manufacturing growth signals persistent inflation pressure, which could delay further Fed easing.
• Opportunities in beaten-down sectors – Historical trends suggest that long-short momentum baskets dropping 10%+ over five days often rebound 80% of the time in the following week.
• Watch earnings closely – Retail, tech, and industrials will remain sensitive to profit reports, as seen with Walmart, Palantir, and Boeing developments.

Key takeaways for investors

• S&P 500 losing streak: Five days of declines mark fading summer momentum.
• Retail warning signs: Walmart’s profit squeeze raises concerns about consumer strength.
• Labor market in focus: Jobless claims hint at cracks in employment.
• AI trade cools: Tech valuations face a much-needed reset.
• Powell’s speech critical: The Fed’s next move could determine near-term direction.

What does this mean for you?

Today’s action shows a clear shift from optimism to caution. Investors are no longer chasing momentum; they’re weighing risks tied to consumer spending, job trends, and Fed policy.

With the S&P 500 now on its longest losing streak since spring, the spotlight is firmly on Powell. His Jackson Hole remarks could either calm markets or deepen the unease. Until then, Wall Street is in holding mode.

FAQs:

Q1. Why did the US Stock Market fall today?
The market fell on Walmart’s earnings disappointment, higher jobless claims, and caution ahead of Powell’s Jackson Hole speech.

Q2. What is driving the S&P 500 losing streak?
The S&P 500 is down for five days as weak retail margins, cooling AI stocks, and labor market jitters weigh on sentiment.