The stock market moved lower on Thursday, pushing the S&P 500 to the brink of bear market territory, as investors continued to sell shares following warnings from major retailers about inflationary pressures.
The market selloff has taken a toll on stocks.
The S&P 500 lost 0.8% and the tech-laden Nasdaq was up 2%.
The benchmark S&P 500 is currently at the edge of a bear market, which would be its first downturn since March 2020.
The market's worst selloff in nearly two years added to the losses on Wednesday as disappointing quarterly results from major retailers sparked fears about inflation causing an economic slowdown.
Target and Walmart's stock prices fell again on Thursday after they reported rising costs that hurt profits.
After it became the latest retailer to post disappointing quarterly results, shares of Kohl's fell up to 5% before paring back their losses.
The ongoing selloff wreaks havoc in all corners of the market, says Jonathan Krinsky, an analyst with BTIG.
With the Federal Reserve Chair promising to keep raising interest rates to combat inflation, investors are worried that could lead to a sharp economic downturn. The stock market is coming off of six straight weeks of losses. The S&P 500 has fallen more than 18% in the past year, putting it near bear market territory. The stock market has been in a bear market for weeks. Unemployment claims have risen for a third week in a row, with some experts suggesting that the economy could be in trouble due to a weak earnings season.
Shrinking profit margins from major retail retailers combined with comments from Powell was too much for the market to handle. Growth fears are still gripping investors and this year, the Fed doesn't have their back, as evidenced by the selloff that continued into Thursday.
The plight of companies and consumers has been brought into sharp focus by the results from Walmart and Target this week. Soon enough, those higher costs will be felt more strongly by the American consumers, with a feeling of inevitability about a slowdown in economic growth, if not a recession.
Experts worry that the stock market crash could have a negative effect on the economy.
The stock market selloff continues as major retailers are concerned about rising cost pressures.
Target stock plunges as inflation squeezes customers and sends costs soaring.
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