If you look at the current developments at Walmart $WMT (-2,31 %)it quickly becomes clear that the mood is anything but good. The share fell further on Friday and lost a lot of value in the gloomy overall market. It fell by over 6.5 percent on Thursday, followed by a further 2.8 percent on Friday - a clear sign of the tense situation.
The reason for the decline? According to the University of Michigan, the consumer climate in the USA has deteriorated more than expected. Concerns about rising inflation, particularly due to possible tariffs, are weighing on consumers. This could be alarming for Walmart as an important indicator of Americans' consumer sentiment.
Technical analysis shows that the stock has now fallen below the 50-day moving average, which could reinforce the downward trend. Despite a small gain of 4.5 percent since the beginning of the year, Walmart shares have already lost over 61.8 percent of their gains this year.
How do you assess the situation? Is this the right time to invest or should investors be more cautious? 👍