US stocks slip as Walmart outlook disappoints, Iran tensions flare

US stocks eased on Thursday as traders wrestled with two very different risks: a cautious outlook from Walmart and a sudden jump in Middle East geopolitical premium.

Walmart delivered a solid quarter, but its forward guidance cooled expectations for the year ahead, reviving nerves about how long the consumer can keep absorbing higher prices and interest rates.

At the same time, oil pushed higher again after a sharp midweek surge, with fresh reports pointing to a deteriorating US-Iran security backdrop.

Walmart’s guidance gap steals the show

Walmart’s latest results were broadly steady, with adjusted EPS of $0.74 and revenue rising 5.6% to $190.7 billion.

Those figures came in just ahead of Wall Street’s baseline expectations: $0.73 in adjusted EPS and roughly $190.6 billion in revenue, underscoring the “beat” part of the equation.

Walmart also pointed to continued momentum in its core US business, reporting 4.6% comparable-sales growth in the quarter.

But investors quickly pivoted from what Walmart earned to what it’s willing to promise.

Walmart’s FY27 guide called for net sales growth of 3.5% to 4.5%, a range that landed as cautious given how much optimism has built into consumer-facing winners.

The market reaction was amplified by the leadership transition overlay, as this is the first outlook issued under new CEO John Furner, and the forecast was widely viewed as conservative.

In other words, the “miss” wasn’t about the quarter that just ended; it was about the forward map Walmart drew for the next one.

That dynamic matters because Walmart is still treated as a read-through on the health of everyday spending.

When the biggest retailer signals it is planning carefully, it can chill the broader risk appetite, even if the latest quarter looked fine on paper.

Oil climbs as US-Iran standoff intensifies

While Walmart set the tone for consumer sentiment, energy markets set the tone for macro anxiety.

Brent traded above $71 a barrel on Thursday and US WTI hovered around $66, extending gains after a powerful jump the prior session.

Wednesday’s move is termed as the biggest daily jump since October, sparked by rising concerns that the US and Iran are inching closer to renewed conflict.

The catalyst for the latest oil leg higher was geopolitical signaling.

The reports have claimed that a major US military operation in the Middle East could begin soon, and that Israel’s government was pushing for a scenario targeting regime change in Iran.

Separate reporting suggested the operation could be weeks-long and potentially conducted jointly with Israel, adding to the market’s sense that the risk is no longer theoretical.

For equity traders, the oil spike adds an inflation complication at an awkward time.

The Fed debate has already highlighted that policymakers are not ruling out tighter policy if inflation stays sticky; one widely circulated excerpt from the minutes showed “several” officials said upward rate adjustments could be appropriate if inflation remains above target.

That backdrop helps explain why selling can feel sudden and sweeping when multiple worries hit at once.