U.S. stocks dropped following mixed profit forecasts from some of the country’s largest retailers amid the uncertainty caused by President Donald Trump’s trade war. The S&P 500 was down 0.6% in early trading, setting up a second consecutive decline after a six-day winning streak. The Dow Jones Industrial Average dropped 327 points, while the Nasdaq composite fell 0.6%. Rising Treasury yields in the bond market added to the downward pressure. Target saw its stock decline after reporting weaker-than-expected results for the start of the year.
In pre-market trading, Wall Street was already on a downward trajectory. Futures for the S&P 500 were down 0.5%, and the Dow Jones Industrial Average slid 0.8%. Nasdaq futures also dropped 0.5%. Target’s forecast has been negatively impacted by concerns over tariffs and consumers pulling back on spending. The retailer now expects a slight sales decline in 2025 and revised its earnings per share to between $7 and $9. Previously, it had projected earnings per share of $8.80 to $9.80 for 2025.
Many companies have expressed difficulty in forecasting profits due to uncertainty about tariffs and the economy. Walmart, for instance, announced that it would raise prices to offset the tariffs imposed by the Trump administration.
However, some companies are still performing well, such as Lowe’s, which met Wall Street’s sales and profit targets and maintained its forecast for the year.
Oil prices rose nearly 1% after a CNN report suggested that Israel may be planning an attack on Iranian nuclear facilities. Such conflicts typically lead to higher oil prices due to fears of disruptions to supply. U.S. benchmark crude gained 50 cents to $62.53 per barrel, while Brent crude rose by 48 cents to $65.86 per barrel.
In global markets, Europe saw mixed results. Germany’s DAX fell by 0.2%, Paris’s CAC 40 dropped 0.5%, and London’s FTSE 100 remained almost unchanged. In Asia, Japan’s Nikkei 225 fell 0.6%, weighed down by concerns about the U.S. tariffs. Japan’s exports to the U.S. saw a decline of nearly 2% in April. However, the Hang Seng in Hong Kong climbed 0.6%, and the Shanghai Composite in China increased 0.2%.
Elsewhere, Australia’s S&P/ASX 200 gained 0.5%, and South Korea’s Kospi advanced by 0.9%. Taiwan’s Taiex rose by 1.3%, and India’s Sensex gained 0.5%.
In currency markets, the U.S. dollar dropped against the Japanese yen, falling to 143.81 yen from 144.51 yen. The euro rose slightly to $1.1320 from $1.1284.
