S&P500 and Dow Jones: EU Tariffs and Walmart Miss Pressure US Stocks Today

S&P 500 Futures Dip as Traders Eye Jackson Hole and Walmart Earnings

U.S. stock futures edged lower early Thursday following four straight losing sessions for the S&P 500, with selling pressure focused on major tech names and traders reacting to Walmart’s earnings results.

Dow futures were off 118 points, or 0.3%, while S&P 500 and Nasdaq 100 futures slipped 0.2% and 0.1%, respectively. The broader market has struggled to regain traction this week, with the S&P 500 down 0.8% and the Nasdaq off 2.1% heading into Thursday’s open.

Walmart Hikes Outlook but Misses Profit Target — What’s Behind the Stock Drop?

Despite topping revenue estimates and raising its full-year outlook, Walmart shares dropped nearly 3% in premarket trading. The retailer posted $177.4 billion in quarterly revenue, beating expectations of $176.16 billion, and adjusted EPS of $0.68.

However, profit came in below expectations, pressured by restructuring charges, insurance costs, and litigation expenses. Comparable U.S. sales rose 4.6%, beating estimates, while Sam’s Club sales climbed 5.9%. E-commerce remained a standout with 26% growth in the U.S.

Tariff costs continue to climb, Walmart CFO John David Rainey said, although the retailer is absorbing some of the burden to avoid alienating value-driven shoppers. “There are certainly areas where we’ve had to pass some of those costs along,” Rainey said, but added customer behavior remains stable, with no material pullback in spending.

Tech Weakness Continues to Weigh on Indexes

The biggest drag on the market this week has come from tech giants. All eight of the largest S&P 500 companies — including Nvidia, Apple, and Microsoft — closed lower on Wednesday. Traders took profits after a strong summer rally, leaving the sector vulnerable to further downside if selling accelerates. Nvidia, now worth over $4.3 trillion, saw a modest 0.14% dip, while Apple fell nearly 2%.

This tech pressure contrasts with strength in the next tier of large-cap names like Walmart, Oracle, and Mastercard, which all advanced on Wednesday. Still, broad conviction remains shaky, and traders are bracing for further rotation.

Will Powell Signal a September Rate Cut at Jackson Hole?

All eyes are now on Federal Reserve Chair Jerome Powell, who is scheduled to speak Friday at the central bank’s annual Jackson Hole symposium. Fed fund futures suggest a nearly 80% chance of a September rate cut, yet minutes from July’s meeting showed hesitancy among policymakers. Concerns remain about inflation and labor market resilience. Some Fed governors dissented on holding rates steady — a rare split that raises uncertainty about the central bank’s next move.

Market Outlook: Focus Shifts to Powell’s Tone and Tariff Impacts

While Walmart’s sales resilience and e-commerce strength offer some reassurance on the consumer front, rising tariff costs and tech weakness are flashing caution signals.

Powell’s comments will be critical in shaping rate expectations heading into September. Traders should prepare for potential volatility depending on whether the Fed chair signals concern over inflation or validates market hopes for easing.

Watch for clues on rate policy and consumer demand stability as catalysts for the next market move.

More Information in our Economic Calendar.