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Stock Market Today: Dow in Biggest Slump Since 2020 on Turmoil in Target, Tech

Stock Markets May 18, 2022 04:06PM ET
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© Reuters

By Yasin Ebrahim

Investing.com -- The Dow slumped Wednesday, as a selloff in tech and a plunge in Target's following weaker-than-expected quarterly results triggered a selloff in retailers that pushed stocks to their biggest one-day loss since 2020. 

The Dow Jones Industrial Average slipped 3.6%, or 1,162 points, its biggest one-day loss since 2020. The S&P 500 fell 3.9%, and Nasdaq fell 4.7%, down more than 26% on the year.

Target Corporation (NYSE:TGT) fell more than 24% 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 5%, 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 7% 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 6%.

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.

Stock Market Today: Dow in Biggest Slump Since 2020 on Turmoil in Target, Tech
 

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Comments (26)
David SheepofCCP
David SheepofCCP May 18, 2022 8:42PM ET
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Meanwhile, JOKE, FRAUD, and MANIPULATION Mitchel is dead silent today. Probably just happy he's clawing some of his money back.
Iyarin Boonnum
Iyarin Boonnum May 18, 2022 8:41PM ET
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Housing market in US is going to crisis again!!!!​
Jimmy Dorward
Jimmy Dorward May 18, 2022 8:41PM ET
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Yeah? Not where i live. Climbing higher and higher by the day and cash buyers from every direction. People have more money than they know what to do with.
Bryan Ojeda
Bryan Ojeda May 18, 2022 7:56PM ET
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im waiting with cash on hand when this housing market bubble pops
Ronald Warren
Ronald Warren May 18, 2022 7:56PM ET
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The next housing market decline will not be like the last. Mortgage companies have not been selling adjustable rate mortgages like before. However, we will see declines in property values, with many people upside down on their notes. The effects will be in the economy. Bankruptcies and no cash flow from equity.
CT OREN
CT OREN May 18, 2022 7:54PM ET
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I love wall street. Please keep on dropping.
Sattar Langary
Sattar Langary May 18, 2022 7:30PM ET
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Mail in ballots gave you Joe Biden! now enjoy!
Alan Rice
Alan Rice May 18, 2022 7:30PM ET
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Lionel Laurent
Lionel Laurent May 18, 2022 7:30PM ET
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Incapable messieurs le pire président des États Unis
Cory Bedell
Cory Bedell May 18, 2022 7:12PM ET
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we are about to see this bubble pop either at the end of this year or next year, in housing and in labor
Aming Xu
Aming Xu May 18, 2022 6:57PM ET
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Wall Street robbery
Kerry Ditto
Kerry Ditto May 18, 2022 6:51PM ET
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Massive rebound is highly likely tomorrow. Sooner or later tariffs on China imposed by Trump would end. It would stop inflation. The problem solved.
Trevor Roberts
LimitUp May 18, 2022 6:51PM ET
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yes liberal this is def Trumps fault🤡
Matt Kay
Matt Kay May 18, 2022 6:51PM ET
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lock limit down is what you gon get tomorrow lol
Ronald Warren
Ronald Warren May 18, 2022 6:46PM ET
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All this comes back to mega money printing and a government with a green agenda that increases fossil fuel prices.
Faux News
Faux News May 18, 2022 6:46PM ET
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The stock market is literally a Casino without the pull handles.
Trevor Roberts
LimitUp May 18, 2022 6:46PM ET
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Faux News If you want to understand what is happening, learn about the Fed and easing since 2008.
William Smith
William Smith May 18, 2022 6:46PM ET
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Look at Biden's energy policies and record unfunded spending if you REALLY want to know what's causing inflation.
Kerry Drake
Kerry Drake May 18, 2022 6:36PM ET
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The government inflated our markets to get everyone in the country on-board, then they pull the rug out on American citizens to lose money to pay back what the government borrowed.
JJ Dodgers
JJ Dodgers May 18, 2022 6:36PM ET
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the rich getting richer
Nicholas Segalle
Nicholas Segalle May 18, 2022 6:36PM ET
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Its a K shape recovery.
 
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