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S&P 500 Slips as Rout in Target Triggers Selloff Storm; Dow Down 1,200

Stock Markets May 18, 2022 03:28PM ET
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© Reuters

By Yasin Ebrahim

Investing.com -- The S&P 500 slumped Wednesday, as big tech resumed its selloff and a rout in Target following weaker-than-expected quarterly results triggered a selloff in retailers.

The S&P 500 fell 4.3%, the Dow Jones Industrial Average slipped 4.3%, or 1,220 points to remain on course for its one-day biggest loss since 2020. The Nasdaq fell 4.9%.

Target Corporation (NYSE:TGT) fell more than 26% after reporting first-quarter earnings that fell well short of estimates, and cutting its guidance on margins, citing ongoing cost pressures.

Lowe’s Companies (NYSE:LOW) also contributed to the gloom, falling about 6%, after reporting mixed quarterly results as revenue and comparable-store sales fell short of Wall Street estimates. 

The quarterly results sparked a selloff in retailers, with Walmart (NYSE:WMT), Costco Wholesale (NASDAQ:COST) and Dollar Tree (NASDAQ:DLTR) down sharply. TJX Companies (NYSE:TJX) bucked the trend lower, rising more than 6% after the discount retailer’s quarterly profit that topped estimates.

Big tech pared some of their gains from a day earlier, as investors continued to mull the prospect of the Federal Reserve turning more hawkish on monetary policy tightening.

Fed Chairman Powell said on Tuesday the central bank would “keep pushing” interest rates higher until the pace of inflation cools.

Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) led big tech lower, falling more than 7% and 5% respectively.

Treasury yields, meanwhile, struggled to advance, pressured by safe-haven buying as investors remain concerned about slowing growth amid policy tightening from global central banks.

Energy stocks were down more than 3% after oil prices turned negative as sentiment on risk assets and strength in the dollar weighed.

Halliburton Company (NYSE:HAL), Marathon Oil Corporation (NYSE:MRO), and APA Corporation (NASDAQ:APA) were among the biggest sector decliners, with the latter down more than 7%.

On the economic front, housing activity continued to slow in the wake of rising mortgage rates.

Housing starts, a gauge of U.S. homebuilding, fell 0.2% in April on the month, to a seasonally adjusted annual rate of 1.724 million.

S&P 500 Slips as Rout in Target Triggers Selloff Storm; Dow Down 1,200
 

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Comments (20)
Mart Bab
Rubberduck1973 May 18, 2022 4:03PM ET
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Very soon gold and silver will be the only place to hide
Mart Bab
Rubberduck1973 May 18, 2022 4:03PM ET
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Buy it when it’s cheap. Like now. Last chance
Al CS
BHome May 18, 2022 3:52PM ET
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These computer programs need to be limited.
Brad Albright
Brad Albright May 18, 2022 3:52PM ET
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Agreed! These bots run freely in Investing.com comments, but we cannot use the words ******, ********, *******, **** or ****. They are targeting the wrong things.
Ravjir Urjinee
Ravjir Urjinee May 18, 2022 3:49PM ET
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Keep buying the dip. Inflationary time stocks will go up too. Cash is trash!
Keeveen macunfred
Keeveen macunfred May 18, 2022 3:49PM ET
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Are you for real hahaha the stock market is a massive bubble. The Fed has barely raised rates
Ravjir Urjinee
Ravjir Urjinee May 18, 2022 3:49PM ET
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Fed buys everything up with printed money out of nothing. They will not cause a depression. They will do a stageflation this time. Eitger way they gonna own everything. Wealth transfer he he
Antonio Velardo
Antonio Velardo May 18, 2022 3:41PM ET
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What is the receipt to reduce inflation?
Cobra Jitsu
Cobra Jitsu May 18, 2022 3:41PM ET
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Sound money. Not currency, but actual "money".
Ma Lu
Ma Lu May 18, 2022 3:37PM ET
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GAME OVER for private investors
Ric Later
riclater211 May 18, 2022 3:21PM ET
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This is good news people. All markets are way over priced. All that free COVID money and uneducated investors are to blame. Add a weak White House and bad Fed policy and you get this.
Aekpoon Simyindee
Aekpoon Simyindee May 18, 2022 3:10PM ET
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Trump back now , biden get out now
First Last
First Last May 18, 2022 3:10PM ET
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Lin Wood?
Brad Albright
Brad Albright May 18, 2022 3:10PM ET
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Vladimir, is that you?
Kerry Ditto
Kerry Ditto May 18, 2022 3:02PM ET
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It's the economy, stupid. Inflation is not the economy, stupid.
First Last
First Last May 18, 2022 3:02PM ET
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"Inflation is not the economy" -- That's stupid.  Inflation is like 1/2 of the Fed Reserve's mandate.
First Last
First Last May 18, 2022 3:02PM ET
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Republicans think "View source" is hacking worthy of gov't prosecution.  So, no.  www.techdirt.com/2021/10/22/missouri-governor-doubles-down-view-source-hacking-claim-pac-now-fundraising-over-this-bizarrely-stupid-claim/
First Last
First Last May 18, 2022 3:02PM ET
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Oops.  Refer to earlier post.
Kerry Ditto
Kerry Ditto May 18, 2022 2:49PM ET
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Maybe they are too genius to see the real problem. It is not inflation, stupid?
First Last
First Last May 18, 2022 2:49PM ET
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Real problem is inflation caused by Putin's invasion & CCP's shutdowns.
Alan Rice
Alan Rice May 18, 2022 2:44PM ET
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When you (Trumpublicans ) manipulate the markets up (2016-2020) you gotta see THIS coming. Right ??
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First Last
First Last May 18, 2022 2:44PM ET
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Not just "manipulate the markets up".  Also down.  That's why the market during Trump years was in a big trumpet/megaphone pattern.
Michael Davis
Michael Davis May 18, 2022 2:44PM ET
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hmm, biggest drop in market followed by everyone pressuring government to spend spend spend and another two years of pumping money supply and market only expanding with 0% interest rates. market was expanding under Trump with the fed raising interest rates. These moves in market are pushed by hedge fund market movers pushing up then fleecing fools two days later.
Ross Dre
Ross Dre May 18, 2022 2:44PM ET
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Michael Davis trump pressured j powell to QE in 2019 when he briefly came out hawkish. Trump was all about keeping the bubble he inherited afloat while he was in. Not saying dems aren’t primarily to blame.
First Last
First Last May 18, 2022 2:44PM ET
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Michael Davis  "pressuring government to spend spend spend" --  Trump was pressuring for tax cut and got it.  That helped juiced the economy and the Fed raised rates.  Only got to around 2% before Trump's incompetence sank the economy.  Under Biden, economy is growing again -- without tax cuts, and with the Fed raising rates also.
Michael Davis
Michael Davis May 18, 2022 2:44PM ET
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the point was all the fed was pressuring both administration to support the covid recovery with spending programs while they zeroed out the interest rates they had started to raise and ease QE, the fed is as much to blame for inflation encouraging the treasury to print dollars. Republican spending programs were looked at as not enough. And yes Trump pushed unsuccessful to QE but they went right ahead, and the market was working. Trump only hurt the market when he shot his mouth off, not actual police.
 
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