Inflation concerns intensify, Dow and S&P see their biggest two-year decline, Nasdaq plunges over 4.7%

Recent financial reports released by retailers have highlighted rising cost pressures, confirming market concerns about inflation. The U.S. stock market suffered a bloodbath, with the four major indexes opening low and falling sharply. The Dow plummeted by 1164.52 points, or 3.57%, to 31,490.07 points, marking the largest drop since June 2020 and the lowest closing price since March 2021.

The S&P 500 fell 4.04% to 3,923.68, marking its largest drop since 2020. The Nasdaq dropped 4.73% to 11,418.15, the largest decline in tech stocks since May 5.

Dragged down by the U.S. stock market, cryptocurrencies took a hit as well. As of the deadline, both Bitcoin and Ethereum fell below $29,000 and $2,000 respectively, with prices fluctuating within this range. All 11 major sectors of the S&P are on the brink of a bear market, falling by 20% from their historical highs.

The bleak financial reports from retail giants Walmart and Target for two consecutive days have raised concerns about inflation among investors, leading to a sell-off in the market.

Target announced its financial report on the 18th, similar to its competitor Walmart the day before, citing increased fuel and compensation costs, along with lower-than-expected sales of non-essential items like TVs, resulting in a 52% decrease in profit for the quarter, well below Wall Street's expectations, causing a 24.93% drop in stock price.

Following an 11% drop in stock price on Tuesday, Walmart continued to bleed on Wednesday with a 6.79% decrease; Macy's, Costco, Best Buy, and other retail stocks also saw significant declines, averaging at least 4%. Cost pressures have intensified, confirming the severe challenge of inflation.

Kim Forrest, Founder and Chief Investment Officer of Bokeh Capital, stated that the simultaneous plummet in retail stock prices reflects the importance of transportation costs, which are affecting these major companies.

Megan Horneman, Director of Investment at Verdence Capital Advisors, said, "Consumers are facing challenges as they start using credit cards to cover the rising costs of food and energy, and the situation is actually getting worse. This will hurt leading retail locations, with Walmart being one of them."

The SPDR S&P Retail ETF fell by 8.4%, Amazon dropped by 7.2%, Best Buy fell by 10.5%, and Macy's dropped by 12%.

Jeremy Grantham, Founder of asset management firm GMO, stated on CNBC that the current economic downturn is more severe than the tech bubble of 2000, and stock losses could potentially double.

This article is authorized to be reprinted from Horizon News Network