Walmart(US:WMT) Jin Rong Jie·2025-08-22 00:15Market Overview - The US stock market continued its downward trend, with the S&P 500 index declining for the fifth consecutive trading day as investors remained cautious ahead of Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Economic Symposium [1] - All three major indices closed lower: the Dow Jones Industrial Average fell by 152.81 points (0.34%) to 44,785.50 points, the S&P 500 dropped by 25.61 points (0.40%) to 6,370.17 points, and the Nasdaq Composite decreased by 72.54 points (0.34%) to 21,100.31 points [1][2] Technology Sector - The technology sector, a key driver of the US stock market's rise this year, faced profit-taking pressure recently, with major stocks like Nvidia, Meta, and Amazon experiencing declines [3] - The US Technology Seven Giants Index fell by 0.43%, with Apple and Nvidia down by 0.49% and 0.24%, respectively [3] - Concerns over high valuations and macroeconomic uncertainties have led to fears that the adjustment in tech stocks could evolve into systemic risks [3] Retail Sector - Walmart's earnings report highlighted structural challenges in the retail sector, as the company reported a second-quarter sales figure that exceeded expectations but adjusted earnings per share of $0.68 fell short of the anticipated $0.74, marking the first miss in three years [5] - The challenges faced by Walmart include increased promotional efforts, rising costs, and diminishing marginal returns from e-commerce expansion, raising investor concerns about the prolonged path to profit recovery in the retail sector [5] Chinese Stocks - In contrast to the weakness in US tech stocks, Chinese assets saw gains, with the Nasdaq China Golden Dragon Index rising by 1.35%, and companies like Xpeng and NIO recording increases of 11% and 9%, respectively [7] - This trend is attributed to short-term capital rotation towards risk assets and international events, including the US Department of Justice's investigation into Federal Reserve Governor Lisa Cook and the trade agreement framework between the EU and the US [7] Federal Reserve Policy - Market expectations for a rate cut by the Federal Reserve in September are facing challenges, with bets on a 25 basis point cut dropping from 99.9% to 79% [9] - This shift is linked to internal policy disagreements within the Fed, as most officials remain cautious about inflation and labor market conditions, while dissenting opinions reveal deep divisions [9][10]