Stock futures slide as Walmart outlook disappoints, Iran tensions simmer: Live updates

Stock futures fell Thursday, giving back some of the gains from the previous session, as a disappointing outlook from Walmart weighed on sentiment along with simmering tensions between the U.S. and Iran.

Futures tied to the Dow Jones Industrial Average lost 120 points, or 0.2%. S&P 500 futures slipped 0.2%, while Nasdaq 100 futures dropped 0.3%.

Walmart shares traded 3% lower after the company’s full-year earnings outlook fell short of expectations. This overshadowed better-than-expected fourth-quarter results for the fourth quarter.

Traders also remained on edge as crude prices extended gains amid a standoff between Iran and the U.S. over the former’s nuclear program. West Texas Intermediate futures on Thursday rose more than 1% to trade above $66 per barrel.

Wall Street is coming off a winning session, buoyed by gains across the “Magnificent Seven” technology stocks and strength in financials and energy names.

“A rebound in mega‑cap stocks, along with a pause in the rotation and broadening theme that has defined market performance this year, would not be surprising in the weeks ahead,” said Edward Jones senior global investment strategist Angelo Kourkafas.

“Selling has been broad and indiscriminate, and in some cases, valuations may already reflect a substantial degree of disruption risk relative to current fundamentals,” he added.

To be sure, Kourkafas said that even as pessimism in the tech sector has likely become overstated, the prospect of the group “regaining sustainable leadership remains doubtful” as the macroeconomic environment continues to favor cyclical stocks.