New York, Jan 21, 2026, 10:59 ET — Regular session
- Walmart shares slipped in early trading following Tuesday’s tariff-fueled selloff
- Reuters reported that Walmart-backed PhonePe secured regulatory approval to pursue an IPO by mid-2026
- Investors are focused on the Feb. 1 tariff deadline and Walmart’s earnings report due Feb. 19 as key upcoming catalysts
Walmart shares slipped 0.4% to $118.27 on Wednesday, marking another volatile day for major retailers. Investors weighed new U.S. tariff threats alongside a Reuters report scrutinizing Walmart’s investments in India.
Policy risk is front and center. President Donald Trump announced a 10% import tariff starting Feb. 1 on products from eight European nations, set to jump to 25% by June 1. The news put investors on edge following Wall Street’s steep drop the day before.
Tariffs hit Walmart hard, driving up product costs and squeezing margins amid shoppers wary of even minor price bumps at the register. Other retailers like Target and Amazon also saw shares drop Tuesday amid tariff worries rattling the sector.
Reuters reported Tuesday that Walmart-backed payments company PhonePe has secured regulatory clearance for its proposed stock market debut, following a confidential IPO filing in September. Sources indicate that Walmart, Microsoft, and Tiger Global are likely to offload shares as part of the offering.
Markets have shown increased volatility lately. The Cboe Volatility Index (VIX), which tracks expected fluctuations in U.S. stocks through options, climbed to its highest level in eight weeks on Tuesday amid a wave of risk-off moves. “We’ve certainly seen a meaningful reaction in the risk metrics,” said Jim Carroll, senior wealth adviser and portfolio manager at Ballast Rock Private Wealth. Reuters
Some investors are wagering that the political uproar may fade as fast as it erupted. “We get a risk-off and a selloff like this and the Trump administration and the powers that be walk things back,” said Wasif Latif, chief investment officer at Sarmaya Partners, just as EU leaders readied for an emergency summit in Brussels on Thursday to consider their next steps. Reuters
Flows add another layer of complexity. Walmart moved its primary listing to Nasdaq and joined the Nasdaq-100 before the market opened on Jan. 20, prompting index-tracking funds to adjust their holdings accordingly.
The risk runs both ways. Should tariffs shift from talk to reality, retailers might squeeze margins or raise prices enough to strain demand. But if the White House reverses course, the trade could quickly reverse, making recent gains look excessive.
Looking ahead, Walmart is set to release its earnings on Feb. 19, before the market opens. Investors will be watching closely for updates on guidance, pricing strategies, and consumer demand.
