Wall Street closed sharply lower after Walmart warning scares investors

In the session, the technological nasdaq For his part, he scored a pronounced loss of 1.9%, stick to the downtrend S&P 500 what gave in a fringe of 1.2%and the main index Dow Jones fell 0.7%.

“This is what happens when inflation is so high or when consumers have problems paying their bills,” said Eugenio J. Alemán, Chief Economist at Raymond James, adding: “People begin to be very demanding in terms of consumption, so you’re basically cutting back on discretionary purchases in favor of your necessities.”

Along with high inflation, a stronger dollar is also expected to weigh on the profits of companies with global operations.

Wall Street’s major indices rebounded from mid-June lows as falling commodity prices and downbeat economic data prompted investors to pare back expectations of aggressive Fed rate hikes. Federal, but fears of a recession have weakened momentum recently.

US consumer confidence fell for the third consecutive month in July, in a context of persistent concern about the acceleration of inflation and the rise in interest rates, which points to lower economic growth at the beginning of the third quarter.

After the publication of balances in the wheel, Coca-Cola Co gained 1.6% after the company Raise your revenue forecast for the full yearwhile McDonald’s Corp rose 2.7% after exceed comparable quarterly sales and earnings expectations.

european bags

European stock markets fell on the wheelwith those of Germany and Italy leading casualties in the main squares of the euro zone, after the countries of the European Union approved a weakened emergency plan to curb their demand for gas.

Markets were also pressured by a drop in retail stocks following a warning about its earnings from Walmart.

Russia’s Gazprom said it would reduce flows through the Nord Stream 1 pipeline to Germany to a fifth of capacity, which was seen as retaliation against Western sanctions over Russia’s war with Ukraine.

Energy ministers approved a proposal for all EU countries to voluntarily reduce gas use by 15% from August to March, with compromise agreements to reduce cuts in some countries.

The move affected all assets, with euro zone bond yields falling and the euro falling 1%.

The IMF cut its growth outlook for the euro zone for 2022 to 2.6% from 2.8% in Aprilreflecting inflationary spillovers from the war in Ukraine, with Germany seeing its 2022 growth outlook cut to 1.2% from the previous forecast of 2.1%.

German stocks have fallen 17.6% over the yearabove the broader pan-European STOXX 600 index which has lost 12.6%. Italian stocks are down more than 20% with a domestic political crisis adding to the woes.

Leave a Comment