Walmart Earnings, US Retail Sales in Spotlight Today

Markets are focused on Walmart’s earnings report and April US retail sales data, both due later today, as investors look for signals on consumer strength amid trade uncertainty. On Wednesday, the Dow fell 0.2%, the S&P 500 rose 0.1%, and the Nasdaq gained 0.72%. The dollar slipped further against the Korean won after reports of forex discussions between US and South Korean officials.

Equities

The FTSE 100 fell 0.2% on Wednesday, weighed down by share price declines across several large-cap names. Imperial Brands dropped 7.3% after announcing that its CEO Stefan Bomhard will step down following five years at the helm. Compass Group lost 2.5% after maintaining its annual profit and revenue guidance, which failed to impress investors. Spirax Group fell nearly 6% after reporting a slightly weaker four-month profit margin. Precious metal miners also declined, with the sector down 2.5% as gold prices slipped to a one-month low.

In contrast, the FTSE 250 rose 0.3%, supported by gains in several consumer and retail stocks. Burberry surged 17% after announcing plans to cut 1,700 jobs – roughly 20% of its workforce – as part of a cost-saving effort. ASOS gained 3.2% following a new partnership with InPost to offer next-day out-of-home delivery services in the UK. Goldman Sachs raised its 12-month forecast for the FTSE 100 to 8,800 from 8,500, citing improved sentiment after a key US-China trade agreement. Meanwhile, Bank of England policymaker Catherine Mann said she supported holding interest rates steady due to the UK labour market proving more resilient than expected.

In the US, the S&P 500 edged up 0.10% to 5,892.58 after swinging between gains and losses. The Nasdaq rose 0.72% to 19,146.81, while the Dow Jones slipped 0.21% to 42,051.06. Healthcare and materials sectors dragged the S&P lower, with Merck & Co down 4% and Amgen falling 3%. Technology and communication services provided some support, with Nvidia rising over 4% and AMD climbing 4.7% after approving a $6 billion share buyback plan.

American Eagle Outfitters fell 6.4% after withdrawing its full-year forecast, citing uncertainty linked to tariffs. Boeing rose 0.6% after securing a jet order from Qatar Airways during President Trump’s Middle East visit. Investors are awaiting US PPI and retail sales data on Thursday, with particular focus on signs that tariffs may be affecting consumer and producer prices. Federal Reserve Chair Jerome Powell is also due to speak, with markets watching closely for policy signals.

Forex & Commodities

The US dollar slipped on Thursday following reports that US and South Korean officials recently discussed the dollar-won exchange rate. The South Korean won rose 0.8% to 1,396.22 per dollar, extending gains from the previous day. It is now up nearly 6% in 2025. The Taiwan dollar also strengthened, gaining 0.5%, while the Japanese yen rose 0.5% to 146.04 per dollar. Despite Thursday’s losses, the dollar index is set for a 0.5% gain this week but remains down nearly 7% this year. Sterling was little changed in early trading, with no significant UK economic data released so far this week to move the currency.

Gold prices fell sharply as investors looked ahead to US producer price index (PPI) data and a speech from Federal Reserve Chair Jerome Powell. Spot gold dropped 1.3% to $3,136.97 an ounce, hitting its lowest level since 10 April. US gold futures fell 1.5% to $3,140.00. Silver was down 1.5% at $31.74 an ounce, while palladium edged lower by 0.3% to $947.81. Platinum gained 0.4% to $979.64. Softer US consumer inflation earlier in the week has left investors cautious ahead of more inflation data. Markets now expect the first US interest rate cut in October, with 50 basis points of reductions anticipated by year-end.

Oil prices fell more than $1 on Thursday, with Brent crude down 2.3% to $64.60 a barrel and West Texas Intermediate losing 2.3% to $61.69. Investors reacted to signs of progress in US-Iran nuclear talks and a surprise build in US crude inventories. Data showed US stockpiles rose by 3.5 million barrels last week, defying expectations of a draw. OPEC trimmed its forecast for oil supply growth from non-OPEC producers, including the US.