Wall Street ended in a sharp decline on Wednesday, as retailer Target lost about a quarter of its stock market value as it became the latest victim of the price jump, fueling worries about the US economy. .
The S&P 500 index closed down 4.04% at 3,923.68 points. The Dow Jones fell 3.57% to 31,490.07 points. The Nasdaq Composite technology index fell 4.73% to 11,418.15 points.
It was the worst daily pullback for the S&P 500 and Dow Jones indices since June 2020.
Target Corp’s first-quarter profit halved and the company warned of a bigger margin hit from rising fuel and freight costs. Its shares are down about 25%, a loss of approximately $25 billion in market capitalization, in their worst session since the “Black Monday” crash on October 19, 1987, when the Dow Jones plummeted 22, 6% in one day, equivalent to a decline of about 6,500 points in the index today.
Interest rate-sensitive mega-cap growth stocks fell again, pulling the S&P 500 and the Nasdaq technology index lower. Amazon, Nvidia and Tesla Inc all lost about 7%, while Apple lost 5.6%.
All 11 S&P 500 sector indices were down. Discretionary consumption and basic consumption led the devaluation, both with a drop of more than 6%.
The S&P 500 is down about 18% so far in 2022 and the Nasdaq is down about 27%, hit by falling growth stocks. Nearly two-thirds of S&P 500 stocks are down 20% or more from 52-week highs, according to data from Refinitiv.
Source: CNN Brasil
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