NEW YORK, Feb 3, 2026, 10:32 (EST)
- Walmart’s market value touched $1 trillion for the first time on Tuesday.
- Shares jumped on optimism a new U.S.-India trade deal will ease tariff pressure.
- Investors point to Walmart’s India sourcing push and its Flipkart stake.
Walmart’s stock pushed the retailer’s market capitalization — the total value of its shares — to $1 trillion for the first time on Tuesday, after gains tied to a sweeping U.S.-India trade agreement.
The move matters now because tariffs are one of the biggest wild cards for retailers’ costs this year. U.S. President Donald Trump said Washington would cut tariffs on Indian goods to 18% from 50% as part of a deal that also calls for India to halt Russian oil purchases and lower trade barriers.
A White House official said the U.S. would also drop a separate 25% duty that had been imposed on Indian imports over India’s Russian oil purchases, alongside lowering a country-specific tariff to 18%.
Walmart has been shifting more supply-chain activity toward India as it tries to reduce dependence on China, and it holds an roughly 80% stake in Indian e-commerce firm Flipkart, the Motley Fool reported. The report cited a goal set in June by former Walmart CEO Doug McMillon to source $10 billion of goods from India by 2027.
Walmart shares rose 4.1% on Monday to $124.06, with the stock hitting an intraday high of $124.20, according to MarketBeat. MarketBeat also put Wall Street’s consensus rating at “Moderate Buy” with an average price target of $123.37, and said the company’s last reported quarter topped estimates and included fiscal 2026 profit guidance above analyst forecasts. MarketBeat
Macro investors welcomed the tariff headline but kept a cautious edge. “This breakthrough is unmistakably positive,” said Radhika Rao at DBS, adding that more detail is still needed on what the deal changes in practice. Reuters
India will increase purchases of U.S. goods including petroleum, defence equipment, aircraft, telecom and pharmaceuticals, a government official told Reuters, with a broader pact expected to be negotiated over coming months.
The risk is that the agreement stays vaguer than markets are pricing in. Reuters reported that neither side had issued full details after Trump’s announcement, and that refiners would need a wind-down period to exit Russian oil contracts; Moody’s Ratings warned that an immediate stop could disrupt growth and tighten supply, lifting prices.
For retailers, the mechanics matter: tariffs are import taxes, and lower rates can reduce the cost of goods shipped into the U.S. But analysts also noted that some U.S. “Section 232” duties — national-security tariffs that hit categories such as metals and autos — are likely to remain even under the new framework, leaving pockets of trade friction in place. Reuters
