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U.S. stocks fell Wednesday after another major retailer warned of rising cost pressures, confirming the fears over inflation that have sent major benchmarks to big losses so far this year.
The Dow Jones Industrials thundered lower 492.72 points, or 1.5%, to begin Wednesday at 32,161.87.
The S&P 500 stumbled 70.27 points, or 1.7%, to 4,018.58
The NASDAQ Composite hesitated 203.44 points, or 1.7%, to 11,781.08.
Those losses come after a disappointing earnings report from Target. Shares tumbled more than 23% Wednesday after Target reported first-quarter earnings that were much lower than Wall Street estimated because of higher costs for fuel and compensation.
The retailer also saw lower-than-expected sales for discretionary merchandise like TVs.
Target’s report comes right after Walmart on Tuesday posted earnings that fell short of expectations as it too cited higher fuel and labor costs. Walmart shares ended Tuesday lower by 11%. They were down another 2% on Wednesday.
Other retailers took a hit on the back of Target’s quarterly earnings miss. Best Buy’s stock price dropped more than 10%, Dollar General’s fell more than 10%, and Dollar Tree’s declined more than 12%.
Lowe’s shares fell more than 3% after missing sales expectations in its first quarter report as shoppers bought fewer supplies for outdoor projects.
More notable decliners in retail included shares of Macy’s, which dropped 11%, and shares of Kohl’s, which fell more than 9%.
Treasury prices gained ground, lowering yields to 2.96% from Tuesday’s 2.99%. Treasury prices and yields move in opposite directions.
Oil prices added 51 cents at $112.91 U.S. a barrel.
Gold prices $8.80 to $1,810.10 U.S. an ounce.
