Wall Street Closes Lower Amid Inflation Fears

Illustration. (Photo: Doc. Antara)

JAKARTA - Wall Street was lower at the close Wednesday (Thursday 18 November ET) on inflation fears and supply chain concerns stemming from retailers' earnings, with investors betting that the Federal Reserve will raise interest rates sooner than expected to tame rising prices. -price.

The Dow Jones Industrial Average slumped 211.17 points, or 0.58 percent, to end at 35,931.05 points. The S&P 500 index lost 12.23 points, or 0.26 percent, to settle at 4,688.67 points. The Nasdaq Composite Index fell 52.28 points, or 0.33 percent, to close at 15,921.57 points.

Seven of the 11 major S&P 500 sectors ended in the red, with energy and financials falling 1.74 percent and 1.11 percent, leading to the declines. The real estate sector rose 0.64 percent, making it the best performing group.

Target Corp. was the latest major retailer to report positive results, raising its annual forecast and beating profit expectations, citing an early start to holiday shopping.

But the company's stock plunged 4.7 percent, following its counterpart Walmart Tuesday (16/11/2021), as the two retailers indicated a hit to their third-quarter margins from supply chain issues.

Other retailers that have yet to submit their financial statements are trading lower. Macy's Inc and Kohls Corp fell 4.5 percent and 3.1 percent, respectively, ahead of figures to be posted Thursday morning, and Gap Inc and Urban Outfitters Inc, next week, slipped 5.2 percent and 4.2 percent.

Some retailers are bucking the trend. TJX Companies Inc jumped 5.8 percent, its highest close since Aug. 27, after reporting earnings that topped estimates, an increase in its share buyback program, and forecast to be well-positioned to meet holiday season demand.

Lowe's Cos Inc. rose 0.4 percent after the home improvement chain raised its full-year sales forecast due to higher demand. Peer Home Depot also reported strong results on Tuesday 16 November.

The Dow was also weighed down by Visa Inc, which slumped 4.7 percent after Amazon.com Inc said it would stop accepting cards issued by the UK carrier because of high transaction fees.