Walmart Shoppers Cutting Back as Gas Stays Above $4 — Sales Growth Hits Slowest Pace in Over a Year

US stocks fell, with the S&P 500 down 0.9% and the Dow dropping 1.3%, due to rising oil prices, inflation concerns, and US debt. Walmart led declines, falling 9.2%, despite beating earnings estimates, as revenue growth slowed and profit forecasts disappointed. Treasury Secretary's bond-buying plan provided temporary relief, but yields remain high, impacting markets.

Walmart reported Q2 sales growth of 2.6%, its slowest since the pandemic, missing Wall Street estimates. Despite beating revenue and profit expectations, its stock fell nearly 10%. The company reduced its current quarter outlook, citing reduced consumer confidence and inflation. Walmart expects positive fiscal year results after price cuts and holiday shopping.

U.S. equity indexes fell as Treasury yields rose, hurting risk appetite. Walmart shares dropped 9.2% after missing sales expectations, dragging down consumer sectors. Oil prices rose, increasing inflation concerns. Other retailers like Costco and Dollar Tree also declined. Bond yields advanced despite Treasury repurchase plans. The Dow, S&P 500, and Nasdaq all fell, with consumer staples and healthcare among the worst-performing sectors. Cryptocurrency-related stocks rallied over 7%.

Walmart's Q2 revenue rose 5.9% YoY to $187.9B, with e-commerce up 23% and advertising up 38%. U.S. comparable sales grew 2.6%, below estimates. Adjusted EPS increased 19.1% to $0.81. Walmart expects FY net sales growth of 4-5% and adjusted operating income up 7-8.5%.

Walmart reported Q2 earnings exceeding expectations, with $2.9B in tariff refunds contributing to the results. Sales growth slowed to 2.6%, the lowest in six years, partly due to higher gas prices. Target also received $994M in refunds. Both plan to use funds to lower prices, but experts warn of potential future price increases and limited consumer benefits.

U.S. stocks fell on Thursday due to rising bond yields and oil prices. The Dow, S&P 500, and Nasdaq dropped 1.32%, 0.87%, and 1% respectively. Most sectors declined, with energy and real estate gaining. Treasury yields rose, and the national debt surpassed $40 trillion. Oil prices increased due to Middle East tensions. Walmart dropped 9.15% on weak guidance, while Deere & Co. rose 7% on earnings.