US stocks plunged Wednesday after another major retailer warned of rising cost pressures, confirming concerns about inflation that led to a big loss this year’s key benchmark.
The Dow Jones Industrial Average fell 720 points (2.2%), with the average set to the first loss in four days. The S & P 500 fell 2.6%, while the Nasdaq Composite fell 2.8%.
These losses occur after a disappointing revenue report from Target.Stock prices fell more than 24% on Wednesday after the target First quarter earnings reported far lower than Wall Street estimates Because of the high cost of fuel and compensation. Retailers also saw lower-than-expected sales of discretionary products such as televisions.
Target’s report arrives shortly after Wal-Mart announces lower-than-expected earnings on Tuesday. Quote higher fuel and labor costs.. Wal-Mart’s share price fell 11% on Tuesday. It fell another 6% on Wednesday.
Megan Horneman, Chief Investment Officer of Verdence Capital Advisors, said: “At the end of the year, we started to realize that consumers were turning to credit cards to pay the price of rising food prices, rising energy prices, but that’s actually getting worse with places and places. Walmart tends to be one of them. “
Other retailers have been hit by Target’s quarterly earnings mistakes. Best Buy’s share price has fallen by more than 8%, Dollar General has fallen by more than 11%, and Dollar Tree has fallen by more than 17%. Macy’s share fell by 9%, while Coles’ share fell by more than 10%.
Rowe stocks have since fallen by more than 4% Missing sales forecast in Q1 report Shoppers are buying less supplies for outdoor projects.
Jack Ablin, founding partner of Cresset Capital, said:
TJX, the parent of TJ Maxx, countered the overall negative trend with a 7% surge in stock prices after discount stores reported a hit on earnings.
The market reversal on Wednesday will occur after stocks begin to recover from this year’s lows.upon TuesdayThe Dow rose 431 points, or 1.3%, while the S & P 500 rose 2% and the Nasdaq Composite rose nearly 2.8%.
The Dow has fallen for the seventh straight week, but stocks have been stable in the last three trading sessions. Last week, the S & P 500 fell to the brink of a bear market, 20% below record highs, but the index has since recovered slightly.
Despite the recent comeback, the S & P 500 is down 16% annually and the Nasdaq Composite is down 25%.
Gas prices are rising steadily, contributing to the inflationary pressures seen throughout the economy. According to AAA, the national average of 1 gallon of regular gasoline reached a record $ 4.567 on Wednesday. Prices are 48 cents higher than they were a month ago, and $ 1.52 higher than what consumers paid last year.
Today, the average for all states is over $ 4 per gallon, and some states pay even more. In California, the state-wide average has exceeded $ 6.
Benchmark 10-year Treasury yields temporarily exceeded 3% on Wednesday morning as investors considered the outlook for monetary tightening.
Equities and other risk assets are under pressure from inflation and the Fed’s attempts to curb price increases through rate hikes, which has led to concerns about a potential recession. Federal Reserve Chairman Jerome Powell said at the Wall Street Journal meeting on Tuesday:Don’t hesitate“About raising interest rates until inflation is subdued.
— CNBC’s Pippa Stevens contributed to this report.
The Dow fell by more than 700 points as sales on Wall Street gained momentum.
Source link The Dow fell by more than 700 points as sales on Wall Street gained momentum.