- After a volatile session on Thursday, the three major Wall Street indices closed slightly higher. The Dow Jones Industrial Average rose by 0.55%, reaching a record closing high. Marginal progress in US-Iran negotiations led to a reversal in oil prices from gains to losses, easing market concerns over Middle East geopolitical tensions.
- Consumer giant Walmart (WMT:US) saw its stock price retreat significantly by 7.27% due to a second-quarter profit forecast that fell short of expectations, dragging down the consumer staples sector.
- Nvidia (NVDA:US), a leader in artificial intelligence, experienced a slight pullback of 1.8% after announcing better-than-expected earnings and an $80 billion stock buyback plan, as investors took profits. However, the Philadelphia Semiconductor Index (SOX:US) rose by 1.3% amid consolidation among competitors.
Geopolitical Rumors Drive Intraday Liquidity Recovery
Wall Street sentiment in the New York session showed a typical V-shaped reversal. In the morning, risk assets were under pressure due to uncertainty over the geopolitical situation in the Strait of Hormuz. By midday, bullish sentiment was boosted as US Secretary of State Rubio mentioned some positive signs in US-Iran talks, and senior Iranian sources confirmed that differences had narrowed. International oil prices quickly reversed from gains to losses following the news, directly leading to a gradual recovery and rise in major US stock indices. Marginal changes in geopolitical rumors became the core driving force for high-frequency fund reallocation during the day.
Retail Profit Margin Guidance Raises Consumer Concerns
Although macro sentiment improved, pressures at the micro level of the real economy were fully revealed through the earnings reports of heavyweight stocks. Walmart, the world's largest retailer, issued a second-quarter profit guidance below Wall Street expectations, resulting in a significant 7.27% drop in its stock price amid volatility. Walmart's Chief Financial Officer pointed out that high oil prices and a persistent high-cost environment are squeezing consumer budgets, and retail price inflation may slightly increase in the second half of the year. This signal weighed on the consumer staples sector, with major retail stocks like Costco also experiencing a 2.2% pullback.
Profit-Taking in Tech Stocks and the Rise of Quantum Computing
In the semiconductor and technology sectors, Nvidia, despite delivering an optimistic second-quarter revenue outlook and announcing a massive buyback, saw its stock price fall by 1.8% after the positive news was priced in. Analysts noted that investors chose to lock in profits after substantial gains, and the market remains cautious about Intel and AMD's future progress in the AI chip field. In contrast, IBM (IBM:US) surged by 12.4% following news of federal funding support for establishing a quantum computing joint venture, becoming the most significant structural highlight in the tech sector for the day.
