Walmart Loses $37 Billion in Single Day as Coty Shares Plunge

U.S. stocks closed broadly lower on Thursday, weighed down by weak corporate earnings and heightened caution ahead of Federal Reserve Chair Jerome Powell’s keynote speech at the Jackson Hole economic symposium.

The S&P 500 notched its fifth straight daily decline, marking its longest losing streak of 2025, while the Dow Jones Industrial Average slipped 0.3%, about 153 points, to its lowest level in a week. The Nasdaq Composite fell 0.3%, recording its third consecutive loss.

Investors are bracing for Powell’s remarks on Friday, searching for clues on whether the Fed might begin cutting interest rates in September after a string of softer labor market data. Market expectations for a quarter-point rate cut dropped to 79% from nearly 100% a week ago, according to LSEG.

Retail giant Walmart saw its shares tumble 4.5%, the steepest single-day drop in nearly five months, erasing about $37 billion in market capitalization. The selloff followed weaker-than-expected quarterly earnings, with earnings per share coming in at $0.68 versus the $0.74 analysts had forecast.

Revenue rose to $177.4 billion, narrowly above the $176.16 billion consensus, but higher costs tied to tariffs weighed on profitability.

Despite the setback, Walmart raised its full-year guidance for both sales and earnings, signaling confidence in its long-term outlook even as near-term headwinds persist.

On the other hand, cosmetics maker Coty suffered a far sharper blow, with shares plunging 22% to a five-year low. The company warned of weaker sales in the current quarter, citing sluggish U.S. consumer spending, category-specific challenges, and pressure from trade tariffs.

Coty’s disappointing fourth-quarter performance underscores the fragile state of discretionary spending in America’s beauty sector, a trend that may ripple across other consumer brands heading into the holiday season.

With Wall Street’s attention now fixed on Jackson Hole, traders fear Powell’s tone could fuel further volatility in equity markets already showing signs of strain.