Dow drops 1,100 points for its biggest decline on Wall Street

The Dow Jones Industrial Average scored its largest loss since 2020 after another retailer warned of mounting cost pressures, confirming investors' worst worries about inflation and rekindling the brutal 2022 sell-off.

Dow fell 1,164.52 points (3.57%) to 31,490.07, its largest drop since June 2020. Dow's bottom point since March 2021.

The S&P 500 fell 4.04 percent to 3,923.68—its worst drop since June 2020. The Nasdaq Composite fell 4.73 percent, the most since May 5. On Wall Street, only eight S&P 500 members were in the green.

Target and Walmart quarterly reports fanned investor fears of increasing inflation eroding company earnings and consumer demand. It's the seventh time this year

Megan Horneman, CIO of Verdence Capital Advisors, said consumers are challenged. “Consumers started using credit cards to pay for rising food and energy prices at the end of the year, and that's become worse.

Target shares fell 24.9% after the retailer reported lower-than-expected first-quarter earnings due to rising gasoline and compensation costs. TV sales were lower than projected.

Walmart posted disappointing earnings on Tuesday, citing increasing fuel and labour expenses. Walmart fell 11% Tuesday. Wednesday's decline was 6.8%.

SPDR S&P Retail ETF fell 8.3% after Target's earnings failure. Amazon plummeted 7.2% and Best Buy 10.5%. Dollar General and Dollar Tree both plummeted 11.1%. Macy's plummeted 10.7% and Kohl's 11%.

Stay Updated

Latest Stories!

Click Here