The S&P 500 index recorded its fifth consecutive loss, led lower by retail giant Walmart. Despite raising its full-year guidance, Walmart reported weaker-than-expected quarterly earnings, which sent its stock down nearly 4%. The sell-off in such a major company weighed on broader U.S. markets, especially consumer and retail-related sectors.

Walmart’s earnings are closely watched because the company serves as a benchmark for U.S. consumer spending habits. With millions of Americans shopping there, any sign of weaker sales can show broader economic challenges. Investors are now questioning whether consumer demand is softening after months of high inflation and slower wage growth.

When Walmart stumbles, it’s not just about one company. It suggests that the average American household may be reducing its spending. This raises concerns about the strength of the U.S. economy, since consumer demand drives nearly two-thirds of GDP. That’s why Wall Street reacted sharply to the earnings report.