Carnage On Wall Street: Stocks Tank After Retailer Earnings Plummet Due To Fuel Costs, Inflation

Must read

Trump Leaves The Door Open To Run With DeSantis As His VP

Donald Trump did not rule out a ticket that would include popular Florida Governor Ron DeSantis as...

Is Ghislaine Maxwell’s Paltry 20-Year Sentence The End Or Merely The Beginning?

This week, Ghislaine Maxwell was sentenced to a mere 20 years in federal prison for her part in...

Trump To Head To Alaska To Stump For Palin And Tshibaka, Could Add To Endorsed Candidate Wins

Former President Donald Trump will head to Alaska on July 9 to headline a campaign rally that Saturday afternoon...

Biden Wants To Scrap Filibuster To Codify Abortion Into Law – Manchin And Sinema Refuse To Budge

President Biden on Thursday called on the Senate to carve out an ‘exception’ to the filibuster as...

By Bethany Blankley (The Center Square)

Stocks tanked Wednesday after major retailers’ earnings reports were down significantly because of inflation, sparking a selling frenzy. Wall Street closed with the largest drop in one day since March 2020.

The Dow Jones Industrial Average drop of nearly 1,200 points was the ninth-largest single-day drop in U.S. history, Seeking Alpha reports.

The stock market began to tank by midday. By noon EST, NASDAQ was down 400 points and the DJIA was down by 800 points. Then the DJIA dropped by roughly 1,100 points after 2pm EST and closed with a near 1,200-point loss.

RELATED: It’s Conservative David vs. The Woke Corporate Green Giant

The market closed with the DJIA down by 3.6%, the S&P 500 down by 4% and the Nasdaq down by 4.7%.

Overall, the DJIA dropped 1,164.52 points, closing at 31,490.07. The S&P 500 dropped 165.17 points, closing at 3,923.68. The Nasdaq dropped 566.37 points, closing at 11,418.15.

Panic set in after major retail corporations like Target and Walmart reported earnings declines. Apple and Microsoft also led big tech losses.

Support Conservative Voices!

Sign up to receive the latest political news, insight, and commentary delivered directly to your inbox.

By subscribing, you agree to receive emails from ThePoliticalInsider.com and that you’ve read and agree to our privacy policy and to our terms and conditions. You further agree that the use of reCAPTCHA is subject to the Google Privacy and Terms of Use.

Target shares were down by nearly 25% after reporting first-quarter results that fell far below Wall Street forecasts. Its second-quarter outlook was also weaker than expected with its quarterly gross margin dropping from 30% to 25.7%.

“We were less profitable than we expected to be or intend to be over time,” Target Chief Executive Brian Cornell said, Reuters reported. “These (costs) continue to grow almost on a daily basis and there is no sign right now … that it is going to abate over time.”

Rising fuel and freight costs will add nearly $1 billion more than originally expected in annual cost, Target said.

Wal-Mart stock fell nearly 7% after it also reported a weaker-than-expected financial outlook. It also said it was grappling with rising fuel costs and inflation eating into its profits.

Apple stock fell 5.6%, Intel lost 4.6%, Microsoft lost nearly 5% and HP dropped 7%.

Companies reporting earnings losses cited rising fuel and freight costs as primary factors.

RELATED: McConnell Focuses On Billions In Aid To Ukraine While Americans Struggle To Buy Baby Formula, Gas

These, coupled with supply chain issues, caused transportation costs to skyrocket in the first quarter. While companies passed on increased costs to consumers, consumers weren’t buying enough to offset company losses.

“Worries over inflation and a hawkish Fed are nothing new, but now add in worries over profit margins and the impact of inflation on the consumer and you have the recipe for a big down day,” Ryan Detrick, chief market strategist at LPL Financial, said, The Hill reported.

Normally, a drop in consumer demand would force companies to drop prices and subsequently reduce inflation. But supply chain issues, coupled with Biden administration energy policies restricting domestic production of oil and gas, are leading causes of prices skyrocketing across the board.

Syndicated with permission from The Center Square.

More articles

Latest article

Trump Leaves The Door Open To Run With DeSantis As His VP

Donald Trump did not rule out a ticket that would include popular Florida Governor Ron DeSantis as...

Is Ghislaine Maxwell’s Paltry 20-Year Sentence The End Or Merely The Beginning?

This week, Ghislaine Maxwell was sentenced to a mere 20 years in federal prison for her part in...

Trump To Head To Alaska To Stump For Palin And Tshibaka, Could Add To Endorsed Candidate Wins

Former President Donald Trump will head to Alaska on July 9 to headline a campaign rally that Saturday afternoon...

Biden Wants To Scrap Filibuster To Codify Abortion Into Law – Manchin And Sinema Refuse To Budge

President Biden on Thursday called on the Senate to carve out an ‘exception’ to the filibuster as...

Dr. Ben Carson Defends Clarence Thomas From Attacks By Hillary: For Liberals ‘Only Thing Worse Than Satan is a Black Conservative’

Dr. Ben Carson responded to racially-tinged criticism from Hillary Clinton directed at Supreme Court Justice Clarence Thomas, suggesting...