The stock market fell on Tuesday with retail stocks leading declines after Walmart slashed its profit outlook for the rest of the year and warned that high inflation is having an impact on consumer spending.
Corporate outlooks caused renewed recession fears.
The S&P 500 lost 1.2% and the tech-laden Nasdaq lost 1.9% as the stock market was under pressure.
Following a profit warning from Walmart late on Monday, markets were hard-hit, with the retailer saying that inflation is affecting how customers spend, with notable cutbacks in spending on general merchandise.
Macy's, Target and Kohl's all fell by 5% or more on Tuesday as a result of the retail sector moving lower across the board.
After the latest data from the Conference Board showed the consumer confidence index fell to 95.7 in July, the stock market fell.
More than 80% of the companies in the S&P 500 that have reported so far have beaten analyst expectations.
Coca-Cola, McDonalds, and General Electric all reported strong results on Tuesday and their stock prices rose.
The Federal Reserve is expected to raise interest rates by another 75 basis points when it concludes its two-day policy meeting on Wednesday. At its meeting last month, the Fed hiked rates by the same amount, as well as promising to use more restrictive policy and warning that high consumer prices could become entrenched for longer.
Ahead of earnings, shares ofshopify tanked. The company said Tuesday that it was laying off 10% of its workforce.
"After a wave of gloomy corporate outlooks made it seem like this current wave of growth concerns would send this economy quickly into a recession, stocks declined." With a lot of massive earnings due after the bell and later this week, Wall Street is bracing for a softer outlook.
Walmart shares plummeted after the company said profit would be slower due to inflation.
The International Monetary Fund has a gloomy outlook for the global economy.
There would be a threat to the U.S. economic recovery.
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