U.S. Stocks Rise as Fear Index Eases Slightly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Source: Benzinga
- Fear Index Update: The CNN Money Fear & Greed Index slightly increased to 37.3 on Wednesday, remaining in the 'Fear' zone, indicating a modest improvement in market sentiment while cautioning against potential risks ahead.
- Stock Market Performance: U.S. stocks rose broadly on Wednesday, with the Nasdaq Composite gaining over 1% to close at 22,807.48, primarily driven by optimism surrounding potential U.S.-Iran diplomatic talks, reflecting a rebound in investor sentiment.
- Earnings Impact: Abercrombie & Fitch Co. (NYSE:ANF) saw its shares fall approximately 4% after disappointing fourth-quarter earnings, while Latham Group Inc. (NASDAQ:SWIM) surged 12% due to better-than-expected results and FY26 sales guidance, highlighting a divergence in market reactions to corporate performance.
- Employment and Economic Data: U.S. private businesses added 63,000 jobs in February, the highest since July, exceeding market expectations of 50,000, signaling strong economic recovery, while the ISM services PMI rose from 53.8 to 56.1, further bolstering confidence in economic growth.
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Analyst Views on COST
Wall Street analysts forecast COST stock price to fall
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 1074.010
Low
769.00
Averages
1061
High
1205
Current: 1074.010
Low
769.00
Averages
1061
High
1205
About COST
Costco Wholesale Corporation (Costco) operates membership warehouses and e-commerce sites that offer a selection of nationally branded and private-label products in a wide range of categories. The Company buys the majority of its merchandise directly from suppliers and route it to cross-docking consolidation points (depots) or directly to its warehouses. It operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. The Company provides wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Costco Shares End Six-Session Gain
- Stock Fluctuation: Costco (COST) shares fell 1.3% to $1,080 on Friday after six consecutive days of gains, indicating market caution regarding its short-term performance.
- Year-to-Date Performance: So far this year, COST shares have risen over 25%, significantly outperforming the S&P 500 Index's 8% increase, highlighting its strong position in the retail sector.
- Analyst Ratings: According to Seeking Alpha's Quant Rating, COST holds a 3.4 Hold rating, receiving an A+ for profitability prospects but only a C for growth factors, indicating concerns about its growth potential.
- Market Expectations: Among 22 Wall Street analysts, 12 have rated the stock as Hold and 2 as Sell, reflecting a cautious outlook ahead of the upcoming Q3 earnings report.
See More
Walmart Shares Drop Amid Consumer Spending Concerns
- Consumer Spending Decline: Walmart's stock fell 7.6% as the company reported signs of reduced consumer spending due to rising gas prices and the impact of the Iran war, indicating market concerns about economic conditions.
- Solid Financial Performance: Despite challenges, Walmart's Q1 revenue rose 7.3% to $177.8 billion, exceeding expectations, while adjusted EPS increased from $0.61 to $0.66, demonstrating strong performance in grocery and general merchandise.
- Cautious Future Outlook: Walmart maintained its full-year revenue growth guidance of 3.5%-4.5%, but its adjusted EPS forecast fell below consensus, reflecting management's cautious stance amid financial distress among lower-income consumers.
- Valuation Pressure: With a price-to-earnings ratio exceeding 40, significantly higher than the S&P 500 and peers, Walmart's valuation appears stretched, leading investors to consider waiting for a better entry point as growth expectations seem conservative.
See More
Walmart Beats Q1 Revenue Estimates Amid Consumer Caution
- Strong Performance: Walmart's Q1 revenue reached $177.8 billion, a 7.3% year-over-year increase that surpassed market expectations of $174.8 billion, demonstrating robust performance in grocery and general merchandise despite pressures from consumer spending slowdowns.
- Sales Growth Concerns: Comparable sales at Walmart U.S. stores rose 4.1%, yet management cautioned that financial distress among lower-income consumers is rising, with average gallons pumped per visit dropping below 10 for the first time since 2022, indicating potential challenges ahead.
- Cautious Outlook: Walmart maintained its full-year revenue growth guidance of 3.5%-4.5% and adjusted EPS forecast of $2.75-$2.85, which is below the consensus estimate of $2.92, reflecting a cautious stance regarding the future economic environment.
- Significant Stock Volatility: Despite solid results, Walmart's stock fell 7.6% post-report, highlighting market concerns over its stretched forward P/E ratio above 40, leading investors to feel uneasy about the valuation expansion in retail stocks, which may limit short-term investment returns.
See More
Oil Price Fluctuations Impact Market Sentiment
- Market Recovery: The S&P 500 index rebounded in afternoon trading on Thursday after earlier losses, primarily influenced by oil prices dropping below $100 per barrel, indicating a cautious optimism regarding economic prospects.
- Consumer Confidence Divide: Walmart's earnings met expectations but warned that high fuel prices are pressuring lower-income consumers, with their fuel purchases falling below 10 gallons for the first time, reflecting a growing trend of economic inequality.
- Quantum Computing Investment: The Trump administration announced $2 billion in grants to support the quantum computing sector, resulting in stock price increases of 8% for IBM and 11% for GlobalFoundries, highlighting the government's commitment to emerging technology fields.
- IPO Prospects: Quantinuum plans to conduct an IPO expected to raise over $1.5 billion, valuing the company between $15 billion and $20 billion, with Honeywell, its majority stakeholder, potentially benefiting, although Jim Cramer expressed caution regarding the stock's recent price surge.
See More
Kroger's New CEO Plans Major Price Cuts to Regain Market Share
- Pricing Strategy: Kroger's new CEO Greg Foran announced a major pricing strategy aimed at reclaiming market share by implementing significant price reductions across thousands of product categories to attract budget-conscious consumers.
- New Store Openings: Kroger plans to open 70 to 80 new stores next year, focusing on regions where it currently lacks presence, thereby supporting its overall growth objectives and enhancing market competitiveness.
- Operational Efficiency: To support the price cuts without eroding profit margins, Kroger will rely on backend operational efficiencies, expecting substantial capital savings through supply chain optimizations and expanded use of artificial intelligence technology.
- Acquisition Setback: Following a major regulatory setback last year when a U.S. federal court blocked Kroger's $25 billion acquisition of Albertsons, the company has shifted its focus entirely toward organic growth and internal investments to navigate market challenges.
See More
Trump Delays EPA Refrigerant Rules, Projected Savings of $2.4 Billion
- Policy Delay Impact: President Trump announced a delay to two Biden-era EPA refrigerant rules, projected to save businesses and families over $2.4 billion, although it remains unclear if these savings will be passed on to consumers.
- Industry Response: Kroger's CEO stated the company is in the process of passing savings to consumers, yet with high inflation and rising fuel prices, it is uncertain whether prices will actually decrease for shoppers.
- Environmental Regulation Context: The new rules aim to reduce leaks and emissions of hydrofluorocarbons in refrigeration and air conditioning systems, but the delay in compliance may impose greater cost burdens on smaller grocery retailers.
- Market Competition Dynamics: Prior to Trump's policy announcement, Kroger had already planned price cuts to better compete with Walmart and Costco, while various factors driving food inflation complicate price adjustments.
See More
Costco Shares End Six-Session Gain
- Stock Fluctuation: Costco (COST) shares fell 1.3% to $1,080 on Friday after six consecutive days of gains, indicating market caution regarding its short-term performance.
- Year-to-Date Performance: So far this year, COST shares have risen over 25%, significantly outperforming the S&P 500 Index's 8% increase, highlighting its strong position in the retail sector.
- Analyst Ratings: According to Seeking Alpha's Quant Rating, COST holds a 3.4 Hold rating, receiving an A+ for profitability prospects but only a C for growth factors, indicating concerns about its growth potential.
- Market Expectations: Among 22 Wall Street analysts, 12 have rated the stock as Hold and 2 as Sell, reflecting a cautious outlook ahead of the upcoming Q3 earnings report.
See More
Walmart Shares Drop Amid Consumer Spending Concerns
- Consumer Spending Decline: Walmart's stock fell 7.6% as the company reported signs of reduced consumer spending due to rising gas prices and the impact of the Iran war, indicating market concerns about economic conditions.
- Solid Financial Performance: Despite challenges, Walmart's Q1 revenue rose 7.3% to $177.8 billion, exceeding expectations, while adjusted EPS increased from $0.61 to $0.66, demonstrating strong performance in grocery and general merchandise.
- Cautious Future Outlook: Walmart maintained its full-year revenue growth guidance of 3.5%-4.5%, but its adjusted EPS forecast fell below consensus, reflecting management's cautious stance amid financial distress among lower-income consumers.
- Valuation Pressure: With a price-to-earnings ratio exceeding 40, significantly higher than the S&P 500 and peers, Walmart's valuation appears stretched, leading investors to consider waiting for a better entry point as growth expectations seem conservative.
See More
Walmart Beats Q1 Revenue Estimates Amid Consumer Caution
- Strong Performance: Walmart's Q1 revenue reached $177.8 billion, a 7.3% year-over-year increase that surpassed market expectations of $174.8 billion, demonstrating robust performance in grocery and general merchandise despite pressures from consumer spending slowdowns.
- Sales Growth Concerns: Comparable sales at Walmart U.S. stores rose 4.1%, yet management cautioned that financial distress among lower-income consumers is rising, with average gallons pumped per visit dropping below 10 for the first time since 2022, indicating potential challenges ahead.
- Cautious Outlook: Walmart maintained its full-year revenue growth guidance of 3.5%-4.5% and adjusted EPS forecast of $2.75-$2.85, which is below the consensus estimate of $2.92, reflecting a cautious stance regarding the future economic environment.
- Significant Stock Volatility: Despite solid results, Walmart's stock fell 7.6% post-report, highlighting market concerns over its stretched forward P/E ratio above 40, leading investors to feel uneasy about the valuation expansion in retail stocks, which may limit short-term investment returns.
See More
Oil Price Fluctuations Impact Market Sentiment
- Market Recovery: The S&P 500 index rebounded in afternoon trading on Thursday after earlier losses, primarily influenced by oil prices dropping below $100 per barrel, indicating a cautious optimism regarding economic prospects.
- Consumer Confidence Divide: Walmart's earnings met expectations but warned that high fuel prices are pressuring lower-income consumers, with their fuel purchases falling below 10 gallons for the first time, reflecting a growing trend of economic inequality.
- Quantum Computing Investment: The Trump administration announced $2 billion in grants to support the quantum computing sector, resulting in stock price increases of 8% for IBM and 11% for GlobalFoundries, highlighting the government's commitment to emerging technology fields.
- IPO Prospects: Quantinuum plans to conduct an IPO expected to raise over $1.5 billion, valuing the company between $15 billion and $20 billion, with Honeywell, its majority stakeholder, potentially benefiting, although Jim Cramer expressed caution regarding the stock's recent price surge.
See More
Kroger's New CEO Plans Major Price Cuts to Regain Market Share
- Pricing Strategy: Kroger's new CEO Greg Foran announced a major pricing strategy aimed at reclaiming market share by implementing significant price reductions across thousands of product categories to attract budget-conscious consumers.
- New Store Openings: Kroger plans to open 70 to 80 new stores next year, focusing on regions where it currently lacks presence, thereby supporting its overall growth objectives and enhancing market competitiveness.
- Operational Efficiency: To support the price cuts without eroding profit margins, Kroger will rely on backend operational efficiencies, expecting substantial capital savings through supply chain optimizations and expanded use of artificial intelligence technology.
- Acquisition Setback: Following a major regulatory setback last year when a U.S. federal court blocked Kroger's $25 billion acquisition of Albertsons, the company has shifted its focus entirely toward organic growth and internal investments to navigate market challenges.
See More
Trump Delays EPA Refrigerant Rules, Projected Savings of $2.4 Billion
- Policy Delay Impact: President Trump announced a delay to two Biden-era EPA refrigerant rules, projected to save businesses and families over $2.4 billion, although it remains unclear if these savings will be passed on to consumers.
- Industry Response: Kroger's CEO stated the company is in the process of passing savings to consumers, yet with high inflation and rising fuel prices, it is uncertain whether prices will actually decrease for shoppers.
- Environmental Regulation Context: The new rules aim to reduce leaks and emissions of hydrofluorocarbons in refrigeration and air conditioning systems, but the delay in compliance may impose greater cost burdens on smaller grocery retailers.
- Market Competition Dynamics: Prior to Trump's policy announcement, Kroger had already planned price cuts to better compete with Walmart and Costco, while various factors driving food inflation complicate price adjustments.
See More
