Disappointing guidance from Walmart on sales this year hit retail shares and the broader market Thursday as investors eyed slower consumption. The Dow Jones industrial average fell 1.0 percent, the S&P 500 lost 0.4 percent and the Nasdaq was down 0.5 percent. US bond yields and the dollar declined while oil prices rose.

Walmart, which has rallied strongly to a record high this year, warned that sales and profits would slow this year. The warning spurred a selloff in Amazon, Costco, and Target too. Consumer spending has been facing persistently high prices and high interest rates, with tariff fears adding to concerns. Palantir, a retail investor favorite, was a notable decliner, along with Lockheed and Northrup, in reaction to contradictory comments from Trump administration officials over steep defense spending cuts.

Among sectors, consumer discretionary, consumer staples, financials, communications services and industrials lagged. Best were energy and health care.

In economic news, a weaker than expected Philadelphia Fed manufacturing report -- which included more upward pressure on prices despite slower growth -- and higher than expected jobless claims did not elicit much reaction. Both add to the narrative of possible slowing in business activity even as inflation pressures persist.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.