(Bloomberg) — US stocks were set for a modest retreat from a record on a disappointing forecast from Walmart Inc. Gold set a fresh all-time high and Treasuries rose.
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Contracts on the S&P 500 and the Nasdaq 100 slipped by about 0.3%. Treasuries gained after Treasury Secretary Scott Bessent said that any move to boost the share of longer-term Treasuries in government borrowing is some ways off as the Federal Reserve shrinks its own bond holdings through quantitative tightening. The 10-year benchmark yield fell two basis points to 4.51% as the yield curve flattened.
Walmart shares fell as much as 9.5% in premarket trading after the world’s largest retailer forecast lower-than-expected profit for the full year. Video game platform Vimeo Inc. and used car retailer Carvana Co. slumped in premarket after disappointing earnings.
The mixed corporate results added to market jitters over US President Donald Trump’s threats to widen trade tariffs and his wavering support for Ukraine and its European allies. The geopolitical tensions lifted gold prices to a new record above $2,954 an ounce.
Data on jobless claims showed unemployment applications were little changed last week, indicating solid demand for workers.
Initial claims increased by 5,000 to 219,000 in the week ended Feb. 15, according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 215,000 applications.
Investors also harbor some concerns about the Trump administration’s domestic agenda, where spending plans may widen the deficit and mass deportations could create labor shortages that reignite inflation.
“Our fixed-income team perceives US policies as potentially constituting a supply shock, slowing the pace of both US growth and disinflation,” according to Andrew Craig at BNP Paribas Asset Management’s Investment Insights Centre. “We view it as less likely that the Federal Reserve will ease policy rates in a stagflationary scenario.”
Palantir Technologies Inc. extended Wednesday’s losses in US premarket trading after Defense Secretary Pete Hegseth outlined plans to cut military spending by 8% over the coming years.
Shares in Renault SA, Mercedes-Benz Group AG and Airbus SE slipped after their results, while US-exposed defense stocks, such as BAE Systems Plc and Qinetiq Group Plc, also lost ground.
