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.

A sharp slide for Walmart on Thursday helped pull Wall Street off of its record. The Standard & Poor's 500 slipped 0.4% for its first drop after setting all-time highs in each of the last two days. The Dow Jones industrial average lost 1%,