Stock futures were struggling to find direction early Friday after dropping on Thursday. Earnings from Walmart, which competes with Amazon as the country’s biggest retailer, have cast a pall over the outlook for consumer spending—the biggest part of the economy.
The question now is whether stocks can bounce back. After all, the Walmart report wasn’t that bad, even if the market reaction shows how traders can react to valuations when they’re getting a bit stretched. Nevertheless, the market has shrugged off repeated scares about President Donald Trump’s tariffs, a fragile peace plan for Ukraine, and the prospect that the Federal Reserve will refrain from delivering any more interest-rate cuts for an extended period.