The Dow and S&P 500 on Wednesday booked their worst daily plunges in about two years, after quarterly retailer results confirmed higher costs for fuel and wages are eating into profits, and U.S. Treasury Secretary Janet Yellen warned of global stagflation taking root.
All 11 main industry groups in the S&P 500 index were lower, with consumer stocks leading the retreat.
- The Dow plunged -1,165.00 or -3.57%
- The S&P 500 declined -165.17 or -4.04%
- The Nasdaq shed -566.37 or -4.73%
Wall Street was caught in its worst daily plunge in two years Wednesday, this time sparked by signs of price pressures at big-box retailers that are eating into corporate margins.
Selling hit the consumer sectors hardest, with Target Corp. TGT shares tumbled 24.9% after the retailer reported earnings that fell far short of expectations. But tech, energy, and other swaths of the market also were swept up.
Shares of Lowe’s Cos. LOW fell on mixed results from the home-improvement retailer. TJX Cos. gained 7.1% Wednesday after the TJ Maxx operator reported double-digit percentage growth in earnings for its first quarter. Cisco Systems Inc. CSCO will report after the close.
Goldman Sachs CEO David Solomon also came out with a recession warning as the Fed raises rates and beings shrinking its balance sheet to move against high inflation, in a CNBC interview Wednesday. Economists at the bank see a roughly 30% chance of a recession in the next 12 to 24 months…….[read more]
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