Dow futures slip 167 points: 5 things to know before market opens

• S&P 500 futures fell 0.4% and Nasdaq 100 futures dropped 0.6%, with Nvidia's $80 billion buyback announcement failing to trigger a broader market rally despite the stock gaining nearly 20% year-to-date
• Walmart earnings are expected to provide critical insights into US consumer spending health amid inflation concerns, serving as a key gauge for broader retail demand trends
• Markets are pricing in a 40% probability of at least a 25 basis point Fed rate hike by year-end as the 10-year Treasury yield climbed to 4.582% on persistent Middle East inflation worries

Market Summary

Market Overview:

U.S. stock futures declined Thursday morning, with Dow futures down 167 points (-0.3%), S&P 500 futures falling 0.4%, and Nasdaq 100 futures dropping 0.6%. The bearish sentiment reflects investor caution despite positive corporate news.

Key Corporate Developments:

*Nvidia* announced an $80 billion buyback program but failed to lift broader market sentiment. The chipmaker's stock edged higher in premarket trading, having gained nearly 20% year-to-date. However, investors remain concerned about sustaining momentum amid intensifying AI chip competition.

*Intuit* shares slumped after cutting guidance and announcing a 17% workforce reduction, raising concerns about consumer-facing technology sector weakness and softening demand for TurboTax and related products.

*Walmart* earnings are scheduled before the opening bell, providing crucial insights into U.S. consumer spending patterns and household budget pressures from inflation. As the world's largest retailer, Walmart's results serve as a key barometer for broader retail demand.

Market Dynamics:

Oil prices declined as Pakistan mediated U.S.-Iran diplomatic efforts. However, the 10-year Treasury yield climbed to 4.582% on persistent Middle East tensions and Strait of Hormuz concerns, fueling inflation worries.

According to CME's FedWatch tool, markets are pricing approximately 40% probability of a 25+ basis point Federal Reserve rate increase by year-end.

Investment Implications:

Trading ideas suggest buying Walmart as the best-positioned retailer amid weak consumer demand concerns, while selling Intuit due to guidance cuts and workforce reductions signaling deteriorating consumer-tech spending. Market sentiment remains bearish (28/100 AI score) as investors weigh geopolitical risks, rising yields, and questions about AI trade sustainability.