U.S. equities slid Wednesday as investors weighed a gloomy holiday quarter update from Target that pressured retail stocks.
The Dow Jones Industrial Average lost 56 points, or 0.2%. The S&P 500 and Nasdaq Composite shed 0.4% and 0.6%, respectively.
Those moves came after Target reported a decline in sales as families deal with high inflation heading into the biggest shopping season of the year for retailers. The warningweighed on futures, sending the stock down more than 15%and pressuring most retail stocks.
Wall Street is coming off a positive session, with the S&P 500 closing up 0.87% on Tuesday and the Dow adding 56.22 points, or 0.17%. The Nasdaq jumped 1.45% and is the only major average on pace to eke out slight gains for the week. The producer price index report, which measures wholesale prices, came in below expectations, which alleviated some of investors’ concerns around inflation.
Stocks have staged a solid run following last week’s better-than-feared consumer price index report. The S&P 500 last week posted its best weekly stretch since June and all the major averages are on track to finish the month with gains.
Some investors say a near-term retreat is on the horizon, however.
“In the short term, the market is very extended and overdue to pull back and digest the recent rally,” said Adam Sarhan, CEO of 50 Park Investments.
Comments