All three US stock markets suffered their worst falls since the pandemic hit, led by the Nasdaq which finished 4.7% lower.
The Dow Jones and S&P 500 fell 3.6% and 4.0%, respectively, amid growing concerns of a stalling economy and stagflation risk.
Target, Tesla slump
Every sector was lower, with consumer staples among the biggest detractors following a collapse in discount retailer Target (NYSE: TGT). The company saw shares tumble by 25% in a single session after reporting a quarterly profit that was well short of expectations, falling to US$1 billion from US$2.1 billion the year prior. Revenue was higher, growing 4%, however, cost of sales surged amid an increase in fuel, transport and labour costs.
It was the opposite story for TJ Maxx operator TJX Co’s (NYSE: TJX) which gained 11% on a 10% jump in profits and a similar increase in revenue as consumers looked for discounted goods.
Tesla (NASDAQ: TSLA) also fell close to 7% after the E&P Index provider dropped the company from their ESG universe on governance concerns.
US stock market movers
Here’s how other popular US stocks fared overnight.
- Nike (NYSE: NKE) down 5.6%
- Apple (NASDAQ: AAPL) down 5.6%
- Coca-Cola (NYSE: KO) down 7.0%
- Netflix (NASDAQ: NFLX) down 7.0%
- Amazon (NASDAQ: AMZN) down 7.2%
- Costco (NASDAQ: COST) down 12.5%
This negative lead from US stock markets is expected to send the S&P/ASX 200 (ASX: XJO) lower when the market opens this morning. For a round-up of the latest news, check out my ASX 200 morning report.