Wall Street/ Walmart earnings/ Russia-Ukraine conflict/ gold prices/ Treasury bonds/ market report/ Newslooks/ NEW YORK/ J. Mansour/ Morning Edition/ Wall Street slipped Tuesday as geopolitical tensions and cautious investors overshadowed strong earnings from Walmart. The S&P 500 and Dow Jones dipped, while gold and Treasury bonds saw gains amid escalating Russia-Ukraine conflict and lower-than-expected U.S. housing starts.
Wall Street Retreats as Geopolitical Fears Overshadow Walmart’s Strong Earnings
Key Points:
- Markets Dip Amid Tensions:
- The S&P 500 fell 0.5%, Dow Jones lost 0.7%, and Nasdaq declined 0.5%.
- European markets saw sharper losses after Russian escalation in Ukraine.
- Gold and Treasuries Rise:
- Gold gained 0.5%, reflecting a shift toward safer investments.
- 10-year Treasury yield fell to 4.37% from 4.41%.
- Walmart Shines:
- Posted stronger-than-expected earnings and revenue growth.
- Raised full-year sales and profit forecasts.
- Lowe’s Mixed Results:
- Despite surpassing earnings expectations, shares fell 3.5%.
- Other Major Reports Awaited:
- Nvidia and Target to report Wednesday; Deere on Thursday.
Wall Street Slips Amid Geopolitical Tensions Despite Walmart’s Strong Results
Deep Look: Wall Street Retreats as Geopolitical Risks Mount
Geopolitical Tensions Send Markets Lower
Wall Street opened on a cautious note as investors reacted to mounting tensions between Russia and Ukraine. The S&P 500 dropped 0.5%, while the Dow Jones shed 319 points (0.7%), reflecting concerns about the escalating conflict after Ukraine reportedly fired six U.S.-made ATACMS missiles into Russian territory.
Russia responded by lowering its threshold for nuclear weapons use, compounding fears among investors and driving a retreat to safer assets. European markets felt the brunt, with France’s CAC 40 falling 1.8% and Germany’s DAX down 1.7%.
Gold and Treasuries Benefit from Safe-Haven Demand
Gold rose 0.5%, recovering some of the losses sustained after Donald Trump’s presidential election victory. U.S. Treasury bonds also saw increased demand, driving the 10-year yield down to 4.37% from 4.41% the previous day. These moves highlight investor anxiety amid geopolitical uncertainty.
Walmart Leads with Strong Earnings, But Optimism Muted
Amid the broader market downturn, Walmart offered a glimmer of hope by reporting robust earnings. The retail giant exceeded expectations for both profit and revenue, citing strong performance across online and in-store sales. The company also noted an uptick in higher-income customers, a testament to its wide appeal during economic uncertainty. Walmart shares rose 3.4% on the news, and it raised its full-year outlook.
Lowe’s, however, delivered similarly strong results but saw its shares dip 3.5%. The reaction suggests investors remain skittish despite positive earnings.
Upcoming Reports Add to Investor Watchlist
Key reports from Nvidia, Target, and Deere are slated for later this week. Nvidia, a leader in artificial intelligence technology, faces pressure to meet lofty growth expectations, with its stock already surging more than 185% this year.
Super Micro Computer Sees Dramatic Surge
Super Micro Computer’s shares soared 22% after the company announced plans to meet Nasdaq listing requirements by hiring an independent auditor. The company, which makes servers crucial for AI applications, has been volatile following an accounting controversy earlier this year.
Global Markets Reflect Mixed Sentiment
While European markets stumbled under geopolitical pressures, Asian markets showed resilience. Shanghai rose 0.7% and Hong Kong gained 0.4%, rebounding from earlier losses.
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