The stocks are declining in the middle Signs of slowdown on the consumer The investor is concerned about US financial expectations.
Target, one of the largest retailers in the country, on Wednesday I mentioned weaker sales For the first quarter, he warned of a possible decrease during the rest of the year, as Americans interact with American definitions by retracting consumption.
Company sales He decreased by 2.8 % to $ 23.8 billion in January to March, a decrease from 24.5 billion dollars from the previous quarter, while Target said it expected a decrease in sales in sales for 2025.
The target faced “several additional winds in this quarter, including five consecutive months of consumer confidence [and] “The uncertainty regarding the effect of potential definitions,” said CEO Brian Cornell said in a call with Wall Street analysts.
S&P 500 61 points, or 1 %, decreased to 5,880 as of 1:47 pm EST. The Dow Jones Industrial Complex decreased 628 points, or 1.5 %, while the Nasdaq compound decreased by 0.8 %.
The target shares decreased by 5.7 % to $ 92.50 in the afternoon trade.
This weakness comes as more companies say High economic uncertainty It raises their financial horizons. They said other adult retailers, including walmart Plan to raise prices To compensate for the definitions imposed by the Trump administration in China and other countries.
Reducing the sales of companies and profits in the end may increase the growth of jobs, which they have She remained flexible In recent months, experts note.
“Companies expect to slow down the demand for consumers and offered unconfirmed outlook, so they stop employment.”
Some retailers benefit from the current environment, as some consumers tighten their belts. Discount giant TJX companies, whose brands include homegoods, Marshall’s and TJ Maxx, on Wednesday I mentioned 5 % increased in net sales in the first quarter of the 2026 financial year 2026 a year ago.
Tax bill
Investors also evaluate how Republicans deteriorate Tax and spending bill The House of Representatives can now affect the nation’s financial affairs. On Friday, Moody’s highlighted the growing debt stack of the government in its decision Reducing American credit rating. The weakest credit rating raises the costs of borrowing to the United States
“We do not believe that the reduction is in itself,” Bank of America’s strategies wrote in a report, but it was an invitation to wake up for those investors who were ignoring the continuous financial discussion. “
The stocks also felt pressure from the highest cabinet revenues in the bond market, which could affect other types of investments. Bond prices fell due to fears that the step in Congress to extend tax cuts can add Trillion.
“The largest part of the bill simply extends [tax] “The most important thing is that the legislation is very expensive and will add more to the debt/deficit at a time when they are both really very unbalanced,” Adam Krizifolley, the head of biological knowledge, said in a note for investors.
He contributed to this report.
