Wall Street got off to a stable start to a packed week. Investors are eagerly awaiting various quarterly figures from American companies and the Fed’s interest rate decision.
(Photo: AP)
Frankfort, New York A potential setback for the US economy from a slacking consumer spending mood is weighing on Wall Street. In addition, the forthcoming interest rate decision by the Fed fueled tension among investors. The US standard value index Dow Jones closed 0.7 percent lower on Tuesday at 31,761 points. The tech-heavy Nasdaq fell 1.9 percent to 11,562 points. The broad S&P 500 lost 1.2 percent to 3921 points.
Walmart’s second profit warning within two months hit investor sentiment. “It’s no surprise,” said Eugenio Aleman, chief economist at wealth advisor Raymond James. With high inflation, consumers would become more selective in their consumption. “They reduce purchases of discretionary items in favor of essentials.”
The reduced targets broke Walmart’s stock price down by almost eight percent. In their wake, the titles of other retailers such as Amazon, Macy’s or Target slipped by up to 7.2 percent.
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