Walmart's Q4 results exceeded expectations, but its FY26 outlook fell short, leading to a sharp drop in shares despite a 13% dividend increase. Palantir's shares dropped 20% due to potential defense spending cuts, but analysts believe the company will gain more IT budget dollars from the Pentagon.

Wall Street is retreating from its record after a slide for Walmart weighed on U.S. stock indexes Thursday. The S&P 500 was down 0.9% in midday trading after setting all-time highs in each of the last two days.