Stocks fall sharply as Target’s woes renew inflation fears

Wall Street
FILE - People walk on Broadway at Wall Street, Wednesday, June 16, 2021. Stocks are opening lower on Wall Street, Wednesday, May 18, 2022, led by steep drops in retailers as Target plunged after issuing a grim quarterly earnings report.AP Photo/Richard Drew, File)

AP Business Writers

NEW YORK (AP) – Stocks closed sharply lower on Wall Street Wednesday as dismal results from Target renewed fears that inflation is battering U.S. companies.

The S&P 500, the benchmark for many index funds, fell 4%. Target lost a quarter of its value, dragging other retailers down with it, after saying its profit fell by half in the latest quarter as costs for freight and transportation spiked.

That comes a day after Walmart cited inflation for its own weak results.

The Dow Jones Industrial Average dropped 1,164 points, or 3.6% and the tech-heavy Nasaq pulled back 4.7%. Treasury yields fell as investors sought safer ground.

Categories: National News, News