The U.S. stock market is experiencing a downturn as mixed profit reports from major corporations, including Walmart, raise concerns among investors. Additionally, rising oil prices driven by geopolitical tensions with Iran have added to market pressures.
As of the morning session, the S&P 500 index has slipped by 0.4%, marking a potential end to its three-day winning streak. The Dow Jones Industrial Average has decreased by 257 points, or 0.5%, while the Nasdaq composite is down 0.6%.
Booking Holdings saw its stock drop by 8% despite reporting quarterly earnings that exceeded analysts’ expectations. The decline is attributed to investor concerns about emerging competitors utilizing artificial intelligence, which may disrupt the travel and hospitality sector.
Carvana’s stock also fell by 4.3%, even after beating profit expectations. Investors scrutinized the company’s profit margins per vehicle sold, which were lower than anticipated.
Conversely, Walmart shares increased by 1.6% after fluctuating in premarket trading. The retail giant reported stronger than expected results for the end of its fiscal year, although its forecast for the upcoming year did not meet analyst expectations.
eBay shares rose by 2.8% following a positive profit and revenue report, bolstered by its acquisition of Depop, a secondhand fashion marketplace, for approximately $1.2 billion. This move is seen as a strategic effort to attract younger consumers.
Oil companies saw substantial gains, with a more than 1.5% rise in crude prices, pushing the benchmark U.S. crude price above $66. Concerns about a possible military conflict with Iran, which holds significant oil reserves, have driven these increases. President Trump has intensified pressure on Iran over its nuclear program, raising fears that any potential conflict could disrupt the global oil supply. Occidental Petroleum shares surged 8.7% after reporting better-than-expected profits.
In the bond market, Treasury yields remained stable following reports indicating a decrease in the number of U.S. workers applying for unemployment benefits. This trend may suggest that layoffs are slowing, which can support a robust job market. Such conditions might influence the Federal Reserve’s decision on interest rates, as officials have indicated they want to see inflation decline further before considering any rate cuts.
The yield on the 10-year Treasury remained steady at 4.09%. Internationally, stock markets in Europe experienced declines while Asian markets performed better. South Korea’s Kospi index rose by 3.1% after trading resumed post-Lunar New Year holiday, although markets in Hong Kong and Shanghai remain closed.
