Walmart Joins the Trillion-Dollar Club as Novo Nordisk Plunged 15%

U.S. stocks closed broadly lower on Tuesday, with the S&P 500 posting its steepest daily decline in two weeks, as investors grew increasingly concerned that artificial intelligence could intensify competition across the software and technology sectors. 

Amid the sell-off, Walmart made history, becoming the first traditional retailer to reach a $1 trillion market valuation, while shares of obesity drugmakers plunged sharply.

The major U.S. indices ended the session in the red, with losses accelerating earlier in the day before moderating toward the close. The Dow Jones Industrial Average pared back steep intraday losses to finish down 0.3%, or 166 points, after falling more than 500 points at one stage.

The S&P 500 declined 0.8%, marking its largest single-day drop in two weeks, while the Nasdaq Composite slid 1.4%, closing at its lowest level over the same period.

Investor anxiety was reflected in volatility measures, with the CBOE Volatility Index (VIX) jumping 10% to 18, after surging as much as 25% earlier in the session.

Technology stocks were among the hardest hit. Shares of Nvidia and Microsoft fell, while Alphabet retreated ahead of its earnings report due Wednesday. Amazon also slipped ahead of its results expected on Thursday.

In contrast to the broader market weakness, Walmart shares rose nearly 3%, closing above $127 for the first time ever and adding $29 billion to the company’s market capitalization in a single session.

With this move, Walmart became the first traditional brick-and-mortar retailer to achieve a $1 trillion valuation, underscoring investor confidence in the company’s scale, pricing power, and ability to compete in an increasingly digital retail environment.

The rally followed bullish analyst actions, with Piper Sandler raising its price target on Walmart to $130 from $123, while UBS lifted its target to $135 from $122.

Shares of obesity drugmakers suffered sharp declines after Novo Nordisk, the maker of the blockbuster weight-loss drug Wegovy, warned of a significant slowdown in annual sales growth.

U.S.-listed shares of Novo Nordisk plunged 15%, marking their worst daily loss in six months, after the company forecast a 5% to 13% decline in sales in 2026, citing intensifying competition in the fast-growing obesity treatment market.

The warning sent shockwaves across the sector. Shares of rival Eli Lilly fell, along with stocks of smaller obesity-focused biotech firms including Viking Therapeutics and Structure Therapeutics, as investors reassessed growth expectations for the industry.