NEW YORK- The Dow Jones Industrial Average sank 1,164 points on Wednesday following reports from retailers Target and Walmart that inflation is cutting into both profits and consumer demand.
The widespread worries by investors over inflation also led to a drop in the S&P 500, which closed down 4% at 3,923.68.
The Nasdaq was also down 4% from Tuesday, closing at 11,418.15.
Shares of Target dropped 25% after the retailer missed first quarter earnings expectations, citing high fuel and labor costs and low demand for discretionary purchases by consumers.
Walmart also finished down, closing at $122 a share on Wednesday after reporting similar Q1 shortfalls.