Walmart stock drops 2.9% due to consumer confidence decline

Walmart's stock fell 2.9% today as part of a general decline in the retail sector. This drop follows the Conference Board's announcement that consumer confidence is at its lowest level in four years. Future expectations are also down, reaching a 12-year low. As the largest retailer in the U.S. and the world, Walmart is particularly sensitive to changes in consumer spending. Despite its reputation for low prices, which may help during a recession, the company's stock slipped in response to broader economic concerns. The SPDR S&P Retail ETF also fell by 1.1%, while Target's stock decreased by 3.4%. Walmart has previously expressed its views on political issues that can affect consumers, such as tariffs. With consumer sentiment declining and new tariffs scheduled to start on April 2, the company faces more economic pressures. The Consumer Confidence Index dropped by 7.2 points to 92.9 this month, with a significant decline noted among older consumers and those earning under $125,000 annually. While one drop in consumer confidence may not alarm Walmart investors, the stock is already under pressure from economic uncertainties and cautious guidance for 2025. Although the retailer is expected to manage through a recession over time, its stock is currently valued higher than usual, which could lead to further declines if the economy weakens. Walmart's management is confident but warns that stock prices will likely continue to respond to economic news.