The Clap The Dow Jones fell 3.6% yesterday, & that’s performing better than the S&P 500 & the NASDAQ.
The deets The Dow Jones fell to its lowest level, 31,490, since March 2021. It also recorded its worst daily percentage decline since June 2020, along with the S&P which fell 4%. The tech-heavy NASDAQ fell by 4.7% after tech stocks had been slowly rebounding a few days before.
What happened? Consumer discretionary & consumer staples were the worst-performing sectors in the S&P 500 on Wednesday, according to the Wall Street Journal. Major retailers such as Walmart & Target said their profits were hit by rising costs, slowing demand, & supply chain constraints. Their stocks plunged 6.8% & 25% on Wednesday, respectively.
Why this matters Investors & consumers alike are adjusting to decades-high U.S. inflation. Markets have been particularly volatile as investors assess what surging interest rates in a period of persistently high inflation will mean to economic growth. On the other hand, consumers are shifting away from goods & more towards services, & the effects are starting to show on goods retailers like Walmart & Target. Other retailers like Macy’s, Kohl’s, Nordstrom & Gap have yet to report their quarterly earnings.