Markets Mixed as Wall Street Recovers from Thursday’s Sell-Off Wall Street’s major indexes showed a mixed performance on Friday as investors attempted to regain momentum following a sharp sell-off on Thursday. The market downturn was partially driven by Walmart’s (NYSE:WMT) disappointing financial outlook, which raised concerns about consumer spending trends.
Early trading saw the S&P 500 (SP500) down by 0.5%, the Nasdaq Composite (COMP:IND) lower by 0.6%, and the Dow Jones Industrial Average (DJI) dropping 0.8%. The losses in the Dow were significantly impacted by UnitedHealth (NYSE:UNH), which saw an 8.3% decline after reports emerged that the U.S. Department of Justice had launched an investigation into its business practices.
Treasury Yields Decline Amid Market Uncertainty Bond yields also saw a dip, reflecting investor caution. The 10-year Treasury yield (US10Y) fell by 5 basis points to 4.46%, while the 2-year yield (US2Y) dropped by 3 basis points to 4.23%.
Walmart’s Forecast Adds to Market Jitters The broader U.S. stock market finished Thursday in negative territory, with the S&P 500 pulling back from its record high. Investors reacted negatively to Walmart’s (WMT) weaker-than-expected forecast, which added to concerns about consumer health, especially in light of soft retail sales data from the previous week.
Deutsche Bank strategist Jim Reid noted, “We saw a moderate risk-off move yesterday, with the S&P 500 falling back from its all-time high. The main story in the U.S. was a weaker-than-expected forecast from Walmart, which added to nerves about the health of the consumer right now.”
Economic Indicators Signal Slowdown Economic data released on Friday pointed to further weakness in key sectors. The February S&P Composite PMI came in at 51.6, down from the prior reading of 52.7, signaling a slowdown in economic activity. Additionally, the services PMI index fell to 49.7 from 53.0, slipping into contraction territory.
Adding to economic worries, U.S. existing home sales for January declined more than expected. The report showed a 4.9% drop to 4.08 million homes sold, missing the forecast of 4.13 million.
As investors assess the latest market movements and economic signals, the focus remains on corporate earnings reports, Federal Reserve policy expectations, and broader economic trends shaping Wall Street’s next moves.
