Dow Drops Over 400 Points Amid Economic Concerns

2025-03-02

The Dow Jones Industrial Average closed more than 400 points lower on Thursday, February 20, 2025, as stocks retreated following two days of record highs for the S&P 500. The Dow lost 450.94 points, or 1.01%, to end at 44,176.65, while the S&P 500 slipped 0.43% to 6,117.52, and the Nasdaq Composite dipped 0.47% to 19,962.36. The decline was driven by a weak outlook from Walmart, which raised concerns about the health of the U.S. consumer and the broader economy.

Walmart shares tumbled 6.5% after the retail giant issued a disappointing fiscal-year sales forecast and earnings outlook for 2026, overshadowing better-than-expected fourth-quarter results. Analysts noted that Walmart’s cautious guidance could signal broader economic challenges, particularly for consumer spending. Other retailers, including Target and Costco, also saw declines, falling about 2% each.

The market was further weighed down by concerns over potential defense budget cuts, which impacted defense-related stocks. Palantir Technologies, a key government contractor, fell 5.2%, extending losses from the previous session after reports that the Trump administration directed the Pentagon to trim its budget. Cruise operators Royal Caribbean, Carnival, and Norwegian Cruise Line also dropped sharply, with losses ranging from 5% to 8%, following comments from Commerce Secretary Howard Lutnick about potential new taxes on the industry.

On the positive side, Alibaba Group shares surged more than 8% after the Chinese e-commerce giant reported strong quarterly results. Hasbro also saw a significant boost, with shares jumping 13% after the toymaker posted better-than-expected earnings and unveiled a new growth strategy.

The yield on the 10-year Treasury fell to 4.51%, reflecting investor caution amid mixed economic signals. Gold prices continued their upward trend, nearing $3,000 per ounce, as investors sought safe-haven assets amid ongoing economic uncertainty.

Overall, the market’s retreat highlights growing concerns about consumer spending, corporate earnings, and the potential impact of government policy changes on key industries. Investors will be closely watching upcoming economic data and corporate earnings reports for further clues on the direction of the economy and markets.

Dow closes more than 400 points lower Thursday, S&P 500 slides from recent highs: Live updates

Stocks moved lower on Thursday, a day after the S&P 500 hit a fresh all-time high, while retail giant Walmart slid after issuing a disappointing outlo

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