Stock Market Mixed With Walmart, Iran, Trump Tariff Ruling In Focus: Weekly Review

• Market odds of a Fed rate cut by June 17 dropped to 52% from 69% a week earlier after core PCE inflation hit 3% in December, the highest since February
• Walmart beat Q4 earnings expectations with 12% EPS growth and 24% e-commerce sales growth, but guided lower on fiscal Q1 and 2027 earnings, dragging on the Dow
• Nvidia announced a multiyear partnership to supply Meta with millions of Blackwell and Rubin AI chips ahead of its February 25 earnings report, while heavy construction firms and chipmakers delivered strong results driven by AI data center demand

Market Summary: Mixed Week With Tariff Ruling, Geopolitical Tensions, and Earnings

Market Performance

The stock market showed mixed results this week. The Nasdaq and S&P 500 posted gains but remained below their 50-day moving averages. The Dow Jones declined slightly, while the Russell 2000 advanced near record highs. Markets faced headwinds from U.S.-Iran tensions and private capital concerns. The Supreme Court struck down many Trump tariffs as expected, producing a muted market reaction Friday.

Economic Data

Q4 GDP growth disappointed at 1.4% (down from 4.4% in Q3), partly due to government shutdown impacts. However, core PCE inflation returned to 3%—the highest since February—dampening Fed rate cut expectations. Markets now see only 52% probability of a June rate cut, down from 69% the prior week. Other indicators including manufacturing and jobless claims showed strength.

Key Corporate Developments

Walmart (WMT) beat Q4 estimates with 12% EPS growth and $190.7 billion revenue under new CEO John Furner. E-commerce sales jumped 24%. However, the retailer guided lower for fiscal Q1 and 2027, announcing a $30 billion buyback program.

Palo Alto Networks (PANW) exceeded Q2 expectations with 27% EPS growth and $2.6 billion revenue, but guided lower on current-quarter revenue.

Nvidia (NVDA) announced a multiyear partnership with Meta Platforms (META) to supply millions of Blackwell and Rubin GPUs for AI data centers, though stock gains were muted ahead of Feb. 25 earnings.

Analog Devices (ADI) hit record highs after reporting 51% EPS growth and guiding higher. Construction firms Quanta Services and Cardinal Infrastructure reported strong results driven by AI data center demand. Gold miners outperformed as precious metals hit record highs.

Oil prices jumped amid geopolitical tensions, while Treasury yields rose slightly.