Walmart Slumps After Q2 Earnings Miss, Tech Stocks Cool Down Amid Jackson Hole Symposium

Walmart shares have fallen 3% after the company's Q2 earnings missed expectations and guidance was raised. Meanwhile, tech stocks have cooled off following a recent selloff, while defensive sectors like healthcare and insurance are showing resilience. Commodity prices are modest, with gold down and Brent crude up. S&P 500 futures are down 0.42%, Nasdaq futures are down 0.44%, and Dow futures are down 0.41%.

Walmart Inc. (WMT) shares fell more than 3% on Thursday following the company's second-quarter earnings report, which missed expectations. The retailer reported adjusted earnings per share (EPS) of $0.68, falling short of the $0.74 forecast by analysts. Despite the earnings miss, Walmart's US sales growth accelerated, with same-store sales rising 4.6%, exceeding Wall Street's forecast of 4.2% [1].

The company's CEO, Doug McMillon, attributed the pricing strategy to tariff-related cost pressures, stating, "We're keeping our prices as low as we can for as long as we can." This strategy drew consumers amid uncertainty in household budgets [1].

Walmart's Q2 revenue came in at $177.4 billion, surpassing Wall Street's expectations of $176.05 billion. The company expects net sales in its fiscal 2026 to increase between 3.75%-4.75%, up from a prior range of 3%-4% growth [1].

Meanwhile, tech stocks have cooled off following a recent selloff, with the Nasdaq-100 Index ($IUXX) down 2.5% from last week's highs. Major tech stocks like Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META) have led the downturn, amid concerns about AI valuations and upcoming Federal Reserve commentary [3].

Defensive sectors like healthcare and insurance have shown resilience, while commodity prices remain modest. Gold is down, and Brent crude is up. S&P 500 futures are down 0.42%, Nasdaq futures are down 0.44%, and Dow futures are down 0.41% [2].

References:
[1] https://finance.yahoo.com/news/walmart-stock-falls-after-earnings-profit-outlook-misses-forecasts-as-us-sales-growth-accelerates-185241176.html
[2] https://www.nasdaq.com/articles/walmart-wmt-q2-earnings-miss-estimates
[3] https://www.legacygrain.com/news/story/34287392/ready-to-buy-the-dip-5-nasdaq-100-stocks-down-10-or-more