Market Indexes Drift Lower; Walmart Drops 8% While Quantum Computing Rallies

Thursday's market session has been a study in contrasts.

All three major indexes opened lower and spent the morning in the red. Near noon ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 0.2% and the S&P 500 (SNPINDEX: ^GSPC) had slipped 0.3%. As usual, the Nasdaq Composite (NASDAQINDEX: ^IXIC) index provided more drama with a 0.3% drop after touching a session low near -0.8% earlier in the morning.

^DJI data by YCharts

The Dow actually poked into positive territory briefly around 10:20 a.m. ET, then gave it back. The vibe so far is choppy and indecisive. Not that the stock market has an agenda, but it's hard to find patterns in the chart lines today.

The good, the bad, and the quantum

The second earnings season of 2026 (mostly covering Q1 results) is drawing to a close with two big reports leading into today's trading. They are pulling the market in opposite directions.

Walmart (NASDAQ: WMT) dropped nearly 8% after warning that high fuel costs are eating into margins. The retail giant beat on revenue but issued soft guidance, and the stock is weighing on the three leading indexes (since it's both a Dow member and a Nasdaq stock). The Strait of Hormuz story is hitting Main Street again. Gas prices near $4.56 per gallon mean higher shipping costs for Walmart and tighter budgets for its customers.

Image source: The Motley Fool.

Nvidia (NASDAQ: NVDA) fell about 1.7%. That sounds bad, but the AI chip designer just posted $81.6 billion in quarterly revenue, announced a $91 billion guidance for next quarter, and unveiled an $80 billion buyback.

The stock's reaction? A collective shrug. This is what happens when great results meet sky-high expectations. Not even a home run report moved Nvidia's needle today. However, the $5.3 trillion market cap gives Nvidia so much weight on the S&P 500 and Nasdaq Composite indexes that it overshadows even Walmart's effect.

There was still room for some good news on Wall Street, though. The day's clear winner is quantum computing.

The Trump administration announced a $2 billion initiative to boost domestic quantum capabilities, and the sector went vertical. IBM (NYSE: IBM) jumped 8.4% after landing a $1 billion contract to build a quantum chip foundry. D-Wave Quantum (NYSE: QBTS) and Rigetti Computing (NASDAQ: RGTI) each soared about 25% on the same news. It's not every day that a government spending announcement sends a whole sector flying.

Patience is still the best play

Thursday's action continued a volatile week. You might remember hits like Tuesday's sell-off and Wednesday's recovery. This latest swing wasn't huge, of course, but if there's a pattern here, it's all about unpredictable index moves.

The Strait of Hormuz remains under Iranian control, and UAE leaders warned Wednesday that full oil flows won't return until at least the first quarter of 2027, even if the conflict ended tomorrow. That means high gas prices, squeezed margins for companies like Walmart, and ongoing uncertainty for investors.

For long-term investors, weeks like this are just weather, not a whole new climate. The companies worth owning haven't changed since Monday. Stay patient, stay diversified, and don't let the daily churn distract you from the bigger picture.

Anders Bylund has positions in International Business Machines, Nvidia, and Walmart. The Motley Fool has positions in and recommends International Business Machines, Nvidia, and Walmart. The Motley Fool has a disclosure policy.