Nightmare on Wall Street, as poor company results fuelled by soaring inflation wipe billions off blue chip firms
Wall Street took another hammering last night, as poor company results fuelled by soaring inflation wiped billions off blue chip companies’ value.
The Dow Jones fell another 0.75 per cent, the S&P 500 dropped 0.58 per cent and the tech-heavy Nasdaq drifted 0.26 per cent lower.
The Nasdaq is already in a bear market, down 28 per cent year-to-date, the S&P 500 has lost 19 per cent and the Dow Jones is off 15per cent.
The Dow Jones fell another 0.74%, the S&P 500 dropped 0.49% and tech-heavy Nasdaq recovered a meagre 0.16%
A bear market is when it has dropped 20 per cent or more over at least a two-month period.
Amazon shares have tanked over a third since the start of the year and Microsoft’s stock price is down around a quarter.
US stock markets are diving further on the back of surprise weak numbers from American bellwether stocks.
Target and Walmart reported dire numbers this week – Target’s share price fell 25 per cent after its earnings per share almost halved while Walmart reported a 25 per cent drop in quarterly earnings.
Department store Kohl’s is the latest US household name to slash its full-year profit forecast, sending shares down 14 per cent this week.
Neil Wilson, chief market analyst at Markets.com, said: ‘However bad it looks, it can easily get worse. Walmart and Target only underscored the state of the inflation crisis facing the consumer.’
Inflation in the US is at a 40-year high at 8.3 per cent. Goldman Sachs analysts estimate a 35 per cent chance the US economy will enter a recession within two years.
Wall Street’s sell-off is hurting London’s stock market as inflation and lower customer spending show no sign of easing.
The FTSE 100 fell 2.82 per cent in early trading to 7239 points, though it recovered slightly to close at 7303 points.
Record-busting inflation is pushing countries to desperate measures with Sri Lanka defaulting on its debt for the first time since it gained independence in 1948.