The stock indices in the United States and Mexico closed this Thursday with significant losses, dragged down by the performance of Walmart and Target, since their financial reports “stoked” fears about the impact of the increase in inflation in recent months.
The Dow Jones and the S&P 500 they fell 3.57 and 4.04 percent, respectively, which meant their largest negative variation since June 2020.
Besides, the Nasdaq it yielded 4.73 percent to stand at 11,418.16 points, its worst decline since May 5.
“Markets were unable to capitalize on yesterday’s strong gains, with another ‘cross-fire’ in the retail/consumer discretionary sector that damaged confidence and caused major averages to drop between 3 percent and 6 percent in overall market sales. The concern arose as Target followed Walmart yesterday with a large profit loss, margin compression and cautious outlook citing rising costs and changes in the pattern of consumer spending,” Investrade analysts said.
They added that selling pressure on both companies (each of which experienced their worst one-day drops since the ‘Black Monday’ crash), had a domino effect in the market with drops in discount/warehouses, malls, freight and truckers fearing fewer deliveries, as well as record gasoline prices today and restaurants due to rising inflationary wages and food costs.
The shares of self-service companies such as Walmart and Target had decreases of 6.8 and 24.9 percentrespectively.
In Mexico, the Index of Prices and Quotations fell 2.08 percent to settle at 50 thousand 394.03 points, while the FTSE BIVA It ended in 1,041.14 units with a decrease of 2.06 percent.
For both indices it was his biggest loss from April 29.
“Stocks finished noticeably lower on Wednesday, with the Dow down more than 1,100 points, as markets more than gave back Tuesday’s rally. While the force behind market anxiety (inflation) is not newInvestor concerns were heightened by earnings announcements from retail giants Target and Walmart, both of which reported disappointing results, citing significant cost challenges.
On the other hand, bitcoin is trading at a price of 29 thousand 1.77 dollars, which means a drop of 3.61 percent compared to Tuesday.
Oil trending negative
The West Texas Intermediate (WTI) fell 3.69 percent to sell at $109.06 a barrel, and the Brent It fell 2.85 percent to a price of 109.18 dollars per barrel.
“There are signs of a reopening in China, and new concern in Libya, where Prime Minister Abdul Hamid Dbeibé had to flee Tripoli under pressure from other warring factions. This could affect the supply of oil from this country. Meanwhile, the European Union announced that it will invest €300 billion over the next 8 years, to end its dependence on Russian crude,” commented Ben Laidler, Global Strategist at eToro.
The price of gold is positioned at 1,816.65 dollars per ounce with a marginal increase of 0.08 percent, while silver was quoted at a price of 21,405 dollars per ounce, a decrease of 1.05 percent.
In the United States, the rate on 10-year Treasury notes fell 10.2 basis points to 2.88 percent. In Mexico, the 10-year M bond rate showed a drop of 2.5 base points, standing at 8.87 percent.