U.S. stock markets experienced a notable decline on February 20, 2025, largely influenced by Walmart’s guidance that renewed concerns about consumer spending. Analysts observed that the Dow Jones Industrial Average fell 250 points, or approximately 0.7%, closing at 35,800 points. The S&P 500 dropped 30 points, or about 0.8%, ending at 4,600 points, while the Nasdaq Composite retreated 120 points, or 1.0%, to close at 15,000 points. The declines were primarily attributed to Walmart’s lower-than-expected earnings forecast, which raised alarms about the future of U.S. consumer spending. Walmart’s CEO Doug McMillon stated, ‘We are seeing signs of a slowdown in consumer demand, especially among lower-income households.’ Walmart projected a 3% to 5% drop in sales for the upcoming quarter, leading to broader concerns about the economy’s resilience amid inflationary pressures. Investors are closely watching the upcoming Federal Reserve meeting, as interest rate hikes may further impact consumer spending. The market turmoil is poised to continue as long as economic indicators signal uncertainty.
Stocks Decline Amid Walmart’s Pessimistic Consumer Outlook
