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

Published 05/18/2022, 01:44 PM
Updated 05/18/2022, 03:28 PM
© Reuters

© 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.

Latest comments

Very soon gold and silver will be the only place to hide
Buy it when it’s cheap. Like now. Last chance
These computer programs need to be limited.
Agreed! These bots run freely in Investing.com comments, but we cannot use the words ******, ********, *******, **** or ****. They are targeting the wrong things.
Keep buying the dip. Inflationary time stocks will go up too. Cash is trash!
Are you for real hahaha the stock market is a massive bubble. The Fed has barely raised rates
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
What is the receipt to reduce inflation?
Sound money. Not currency, but actual "money".
GAME OVER for private investors
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.
Trump back now , biden get out now
Lin Wood?
Vladimir, is that you?
It's the economy, stupid. Inflation is not the economy, stupid.
"Inflation is not the economy" -- That's stupid.  Inflation is like 1/2 of the Fed Reserve's mandate.
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/
Oops.  Refer to earlier post.
Maybe they are too genius to see the real problem. It is not inflation, stupid?
Real problem is inflation caused by Putin's invasion & CCP's shutdowns.
When you (Trumpublicans ) manipulate the markets up (2016-2020) you gotta see THIS coming. Right ??
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.
 "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.
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.
Nice america always great
Replacing Fed with computer program would solve problems.
Less government? That’s not possible.
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/
chairman powell pooped in the middle of sqaure amd announced it loud
stimulated bubble in last 5 years popping!
Less government? That’s not possible.
Fat fingered on to the wrong message thread.
more occasions to buy great value stocks
why ban russia?
why ban russia?
All on low volume too
Brutal scenario again?
Follow the S&P 500 as your guide. Currently, 30% of companies in S&P trading above the 200 day moving average. Bottom is at least down to 20%. In 2009 it was 1%. In 2020 it was 3%.
where can i get those data ? appreciate if u can help ..thanks
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