Walmart Warns of Shrinking Profits, Sparks Wall Street Selloff

Walmart, the largest retailer in the U.S., has issued a concerning outlook for 2025, predicting a potential shrink in profits due to inflation and tariffs, which has triggered a sell-off in major stock indexes. The Dow dropped by 1%, and Walmart's own stock fell by 6.5%, while gold prices surged to record highs amid rising economic uncertainty. Analysts expressed concern that the cautious forecast could dampen consumer spending, which drives 70% of the U.S. economy. Despite this, some experts maintain that Walmart's long-term outlook remains solid, projecting a sales growth of 3-4% for the upcoming year, down from last year's 9.7%. The broader market remains tense as investors await key economic data that could provide insight into consumer sentiment and market stability. Other companies like Celsius Holdings and Dropbox saw contrasting fortunes amid this turbulent climate, highlighting the mixed sentiments on Wall Street.