Dow tumbles 500 points, S&P 500 retreats from record as Walmart forecast raises concern about earnings: Live updates

Check out the companies making headlines in midday trading:

Palantir — The technology stock tumbled 11.9%, on track for its worst day since May. The stock is also on pace to see back-to-back losses of 10% or more for the first time ever. Shares took a hit after the disclosure of a new stock sale plan by CEO Alex Karp and comments from Defense Secretary Pete Hegseth pledging to slash defense spending.

Robinhood Markets — The commission-free financial services provider briefly fell as much as 8.4% as part of a sell-off in speculative stocks such as Palantir.

Walmart — The big-box discount retailer fell 6.6% after Walmart’s forward financial guidance disappointed investors. For the fiscal year ending Jan. 31, 2026, Walmart forecasts earnings per share ranging between $2.50 and $2.60 per share. Walmart, a barometer for U.S. consumer spending, also said it would not be “immune” to effects from proposed tariffs on goods from Mexico and Canada.

The full list can be found here.

— Hakyung Kim

St. Louis Federal Reserve President Alberto Musalem joined the chorus of U.S. central bankers calling for a more deliberate approach to interest rates this year as uncertainty escalates.

Musalem said Thursday he also sees the economy stable with a solid labor market and inflation creeping its way back to the Fed’s 2% target. However, he also noted a high level of economic policy uncertainty and risks that inflation could hold higher for longer.

“Looking ahead, I expect inflation will continue to converge to the FOMC’s 2% target and the labor market will remain near full employment,” Musalem said in remarks to the Economic Club of New York. “This baseline scenario requires that monetary policy remains modestly restrictive until inflation convergence is assured, at which point the policy rate can be gradually reduced toward the neutral level as convergence progresses,” Musalem added.

In keeping with that, the policymaker counseled a “patient approach” after the Fed cut its benchmark borrowing rate by a full percentage point in the latter part of 2024. Musalem is a voting member this year of the rate-setting Federal Open Market Committee.

— Jeff Cox

Even as President Trump broadened his tariff threats to potentially include automobiles, pharmaceuticals and semiconductors this week, Bank of America views most of his contentions as a negotiating tool.

“We remain in the camp that believes tariffs on China will be permanent, but in the order of 10%-20% vs their pre-existing level, rather than the 60% announced during the campaign,” BofA global economist Claudio Irigoyen wrote Thursday. “On Canada and Mexico, we have been arguing that even if tariffs were to be imposed, they would not be permanent but a negotiation tool to obtain concessions on other fronts. The recent developments were in line with our baseline views,” Irigoyen added.

— Brian Evans

After a difficult decade for MSCI China, Morgan Stanley says there is a slight improvement in the equity risk premium for Chinese stocks.

Strategist Jonathan Garner upgraded the MSCI China Index to equal weight from underweight in a research note on Wednesday. Return on equity trends are improving in favor of China, per Garner.

The upgrade “has less to do with the top down macro environment where our economists remain below consensus on nominal GDP growth in 2025,” the strategist wrote.

“Instead it is mainly a micro bottom-up self help story at the stock level in the context of a significant shift in index weights as weaker / more deflation impacted sectors are much diminished in sector representation,” Garner added.

He noted that artificial intelligence enthusiasm is also boosting sentiment around e-commerce and internet stocks.

The iShares MSCI China ETF is up more than 14% in 2025.

— Hakyung Kim

Bank of America analyst Allen Lutz expects an executive order signed Tuesday evening by President Trump will expand access to in vitro fertilization, which would benefit Progyny. While the stock is trading lower Thursday within the broader market, shares are up more than 3% week to date.

“Demand for IVF has continued to rise over the last decade with assisted reproductive technology cycles (ART cycles) growing at 10% [compound annual growth rate],” Lutz said in a note to clients. He explained cost and lack of coverage remain key barriers to wider use.

While the executive order lacks detailed policy action, advocacy is “broadly positive” for the space, he said.

Lutz raised his price target to $30, which implies nearly 27% upside from Wednesday’s close. That puts his target well above the Wall Street average of $22.67.

— Christina Cheddar Berk

Atlanta Federal Reserve President Raphael Bostic on Thursday called for caution on policymaking as inflation holds higher and the labor market shows signs of cracking.

In an essay on the central bank district’s site, Bostic noted that “monetary policy is in a good place and the economy is strong. Still, for various reasons, this is no time for complacency.”

Bostic cited uncertainty over trade and immigration policy as a variable that will make policy calibration difficult. Business leaders in the region expect tariffs to spark inflation, though they have not reported making changes to their practices to accommodate any anticipated changes.

“In recent weeks, we’ve heard not only enthusiasm — particularly from banks, about possible shifts in tax and regulatory policies — but also widespread apprehension about future trade and immigration policy, Bostic wrote. “These crosscurrents inject still more complexity into policymaking.”

Bostic is not a voting member this year of the rate-setting Federal Open Market Committee and will next vote in 2027.

— Jeff Cox

Citi sees a rosy outlook ahead for NXP Semiconductors.

Analyst Christopher Danely upgraded shares of the semiconductor manufacturer to a buy rating from neutral. Simultaneously, he raised his target price to $290 from $210, implying the stock could rise 18% from here.

Shares of NXP Semiconductors have popped 6% over the past 12 months.

Danely cited a recovery in analog semiconductors — those that use traditional versus binary circuit elements — as a major catalyst for the stock. Danely noted that the stock has already risen over the past two weeks on the back of bullish sentiment toward an analog recovery, adding that he believes this is just the beginning of such a recovery.

“We believe the analog recovery is imminent and that every analog company will feel it as sales from the analog companies have fallen roughly 30% from the peak,” he wrote. “Given Consensus estimates have fallen roughly 30% in the past six months, most of the downside has been incorporated in NXP estimates, and as such, we expect multiples to rise across the board in anticipation of estimates moving up.”

— Lisa Kailai Han

Leading economic indicators unexpectedly contracted in January as confidence dimmed in future business conditions, the Conference Board reported Thursday.

The board’s Leading Economic Index declined 0.3% for the month, reversing a 0.1% gain in December and falling short of the Dow Jones estimate for a 0.2% drop. Driving the decline was a 0.1% decline in consumer expectations for business conditions and a 0.2% decrease in average weekly hours.

Nevertheless, Conference Board economists say they expect the economy will grow at a 2.3% pace in 2025.

— Jeff Cox

Manufacturing in the Philadelphia area expanded at a stronger-than-expected pace in February, according to a Federal Reserve report Thursday.

The Philadelphia Fed’s manufacturing index slipped to 18.1 for the month, down considerably from its level of 44.3 from January but ahead of the Dow Jones estimate for 13.2. The index measures the difference between companies reporting expansion against contraction, so any positive number indicates growth.

Internally, the survey showed increases in prices paid and received and monthly declines in new orders, shipments and employment, though all of those indicators remained positive overall.

— Jeff Cox

Warren Buffett’s Berkshire Hathaway dumped 750,000 more shares of dialysis company DaVita for $116.1 million over the past three days, according to a new regulatory filing. This was not part of a preplanned share repurchase agreement that prompted some selling last week.

After this week’s sale, Berkshire’s stake in DaVita drops to 43.9%. The conglomerate first invested in DaVita in 2011. It is widely believed that Buffett’s investing manager Ted Weschler was behind the investment as he had a substantial stake in the health-care name for his hedge fund before joining Berkshire.

— Yun Li

Stocks were lower on Thursday, with the S&P 500 pulling back from its most recent record.

The broad market index slipped 0.2%, while the Nasdaq Composite fell 0.1%. The Dow Jones Industrial Average lost 168 points, or 0.3%.

— Brian Evans

These are some of the stocks moving in Thursday’s premarket:

• Shake Shack — The fast-food chain jumped 10.8% after posting stronger-than-expected quarterly earnings.
• Alibaba — Shares rallied more than 11% after the Chinese e-commerce giant reported quarterly results that beat analysts’ expectations.
• Builders FirstSource — The building materials company pulled back 4.5% after revenue came in under Wall Street’s consensus forecast.

See the full list here.

— Alex Harring

Shares of defense tech company Palantir dropped 4.5% in premarket trading, extending a 10% loss from Wednesday.

The stock has been under pressure this week after a report that the Trump administration is pushing for cuts at the Pentagon. CEO Alex Karp also adopted a new stock sale plan.

However, some bullish Wall Street analysts have argued that Palantir would actually benefit from cost cuts at the Pentagon, as the company’s software and artificial intelligence offerings could be a way to make the Defense Department more efficient.

“The bears which have hated Palantir from $12 to $120 in the last 18 months now have found their latest ‘silver bullet’ negative thesis around PLTR being exposed to these budget cuts and we saw a sharp sell-off in trading accordingly once this news about DOD hit in the afternoon,” Wedbush analyst Dan Ives wrote in a note to clients. “This is exactly the opposite how we believe these DOD cuts will play out as in our view Palantir’s unique software approach will enable the company to gain MORE IT budget dollars at the Pentagon … not less despite these initial knee jerk reactions from the Street,” the analyst added.

Palantir also got a buy rating from Loop Capital.

— Jesse Pound

Initial filings for unemployment benefits edged higher last week but were still consistent with a labor market in which employers are keeping their workforce levels consistent.

Jobless claims totaled a seasonally adjusted 219,000 for the period ending Feb. 15, up 5,000 from the previous week and a bit higher than the Dow Jones consensus estimate for 215,000, the Labor Department reported Thursday.

Continuing claims, which run a week behind, also nudged higher, totaling 1.87 million for an increase of 24,000.

Claims in Washington, D.C., remained elevated as President Trump trims the federal labor rolls, totaling 1,695, according to unadjusted data that represented a slight weekly increase.

— Jeff Cox

Shake Shack posted fourth-quarter results that were pretty much in line with its preliminary numbers that were announced in mid-January. The stock is surging 11% despite first-quarter guidance that looks sour on the surface.

The fast-food chain projects revenue in the current quarter of $326.5 million to $330.9 million, which is below the consensus estimate of $331.8 million. But that shortfall likely comes as a result of the tragic Los Angeles wildfires, which had a fairly significant effect to January sales. Outside of that, CEO Rob Lynch said same-store sales trends “held in January.” That is giving optimism to investors and likely fueling this morning’s rally.

Additionally, despite the conservative first-quarter outlook, Shake Shack gave a solid full-year revenue outlook of $1.45 billion to $1.48 billion versus the $1.46 billion expected by Wall Street, signaling continued momentum in the coming months.

— Robert Hum

Walmart dropped more than 7% after the company said it expects fiscal-year sales to grow between 3% and 4%. The company’s fiscal 2026 earnings outlook, meanwhile, was below analysts’ expectations. The weak guidance overshadowed fiscal fourth-quarter earnings that beat analysts’ expectations.

On top of that, Chief Financial Officer John David Rainey warned that Walmart wouldn’t be completely immune from U.S. tariffs on Mexican and Canadian imports.

“We’ve lived in a tariff environment for the last seven or eight years, and we’ll do what we know how to do,” he said. “We’ll work with suppliers. We’ll lean into our private brand. We’ll shift supply where necessary to try to take advantage of lower costs that we can then pass on to consumers,” the CFO added.

— Fred Imbert, Melissa Repko

Alibaba traded more than 5% higher after the Chinese e-commerce giant reported quarterly results that beat analysts’ expectations.

Net income for the company came in at 48.945 billion yuan in the quarter that ended Dec. 31 on revenue of 280.154 billion yuan. Analysts polled by LSEG expected net income of 40.6 billion yuan on revenue of 279.34 billion yuan.

“This quarter’s results demonstrated substantial progress in our ‘user first, AI-driven’ strategies and the re-accelerated growth of our core businesses,” said Alibaba CEO Eddie Wu in a statement.

— Fred Imbert

Asia-Pacific markets fell Thursday as investors weighed U.S. President Trump’s proposed tariffs on autos, chips and pharmaceutical imports, as well as the Federal Reserve potentially keeping rates higher for longer.

Japan’s benchmark Nikkei 225 and broader Topix index ended the day in negative territory for the second day. The Nikkei 225 closed 1.24% lower at 38,678.04, while the broader Topix index fell 1.18% to 2,734.60.

The yen rose to a more than two-month high of 150.52 per U.S. dollar earlier in the day amid bets of more rate hikes by the Bank of Japan this year.

In South Korea, the Kospi closed down 0.65% at 2,654.06, while the small-cap Kosdaq lost 1.28% to end the day at 768.27.

Mainland China’s CSI 300 dipped 0.29% to close at 3.928.90, while Hong Kong’s Hang Seng Index fell 1.60% to 22,576.98.

Australia’s S&P/ASX 200 declined for the fourth straight day. The index closed 1.15% lower at 8,322.80.

The country’s seasonally adjusted unemployment rate rose to 4.1% in January, in line with Reuters’ estimates.

Indian stocks were also in negative territory, with the Nifty 50 down 0.15%, while the BSE Sensex index fell 0.31% as of 2:15 p.m. local time.

— Amala Balakrishner

European stocks were mixed early Thursday as positive momentum that has carried the Stoxx 600 index to a run of record highs this month wanes.

The index was choppy in early deals, though 0.12% higher by 8:34 a.m. in London.

The U.K.’s FTSE 100 was down 0.29% as France’s CAC 40 rose 0.44%.

U.S. President Donald Trump said during his remarks at the FII Priority Summit in Miami Beach, Florida, on Wednesday that he is thinking of sending 20% of the money saved by the so-called Department of Government Efficiency, or DOGE, to Americans.

“There’s even under consideration a new concept where we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt,” Trump said during his speech at the event.

The president’s comments come just a day after Elon Musk said in a post on social media site X that he “will check with the President” on a proposal to send U.S. households tax refund checks from the money saved by DOGE.

— Sean Conlon

Here are some stocks making big moves in extended trading:

• Klaviyo — The software company surged almost 6% after fourth-quarter results topped Wall Street expectations. Klaviyo posted adjusted earnings of 7 cents per share on $270 million in revenue, above the 6 cents per share and $257 million in revenue that analysts surveyed by LSEG were estimating.
• IMAX — The large screen, high-resolution and surround sound movie company slid nearly 5% following weaker-than-expected fourth-quarter earnings and revenue. IMAX earned 27 cents per share on $93 million in revenue in the latest quarter, below the consensus estimate of 28 cents per share and $103 million in revenue, according to LSEG.
• BioMarin Pharmaceutical — Shares gained more than 7% on the heels of stronger-than-expected fourth-quarter earnings, when BioMarin earned 64 cents per share on $747 million in revenue, while analysts polled by FactSet had penciled in 53 cents per share on $712 million in revenue.

Read here for the full list.

— Sean Conlon