NEW YORK: Wall Street stocks pulled back Thursday despite additional clarity on a US-EU tariff deal, as investors assessed retailer Walmart’s quarterly earnings while jobless claims picked up.
Around 10 minutes into trading, the Dow Jones Industrial Average retreated 0.5 percent to 44,710.59, while the broad-based S&P 500 Index dipped 0.3 percent to 6,378.32.
The tech-heavy Nasdaq Composite Index slid 0.2 percent to 21,141.60.
Among individual companies, Walmart’s shares were down 4.5 percent after it missed earnings expectations even as it beat sales estimates.
But the company lifted its outlook while tariffs added to import costs of many goods in the United States.
US stocks mostly down as markets digest earnings ahead of Fed minutes
Walmart is the latest among major American retailers to report earnings this week, with markets keeping watch on consumer pattern shifts to lower-priced products – or signs of cost increases after new tariffs.
While Washington and Brussels released a joint statement detailing their trade pact for 15-percent US tariffs on many European Union goods – making clear cars will also be subject to the lower level – this was not enough to dispel concerns elsewhere.
Initial jobless claims picked up more than analysts expected, while continued jobless claims also jumped to their highest level since November 2021, Patrick O’Hare of Briefing.com said in a note.
He noted that the economic data “tipped in a stagflation direction,” referring to a situation of elevated inflation alongside stagnant growth and higher unemployment.
Investors are also awaiting Federal Reserve Chair Jerome Powell’s speech at a central bankers gathering early Friday, and are set to parse it for clues on how interest rates might be adjusted later this year.
Minutes of the Fed’s most recent policy meeting in July signaled that officials were concerned about employment and inflation risks – although worries over inflation outweighed those surrounding jobs at the time.
But analysts warn that weakening in the jobs market could tip the odds in favor of an earlier rate cut.
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