Market Snapshot: Dow, S&P 500 end lower as investors hit pause on stock- market rally, Target results disappoint

by | Nov 16, 2022 | Stock Market

U.S. stocks finished lower Wednesday following a big profit miss at Target heading into the holiday season and as strong October retail sales revived concerns about the Federal Reserve’s likely pace of interest rate hikes. How stocks traded
S&P 500
SPX,
-0.83%
fell 32.94 points, or 0.8%, ending at 3,958.79, near the session’s low of 3,954.34.

Dow Jones Industrial Average
DJIA,
-0.12%
shed39.09 points, or 0.1%, finishing at 33,553.83.

Nasdaq Composite
COMP,
-10.23%
fell 174.75 points, or 1.5%, closing at 11,183.66.

On Tuesday, the Dow Jones Industrial Average rose 56 points, or 0.17%, to 33593, the S&P 500 increased 34 points, or 0.87%, to 3992, and the Nasdaq Composite gained 162 points, or 1.45%, to 11358.

What drove markets U.S. stocks hit pause on their recent rally after U.S. retail sales jumped 1.3% in October, suggesting consumers are still spending a lot of money despite the Federal Reserve’s efforts to slow the economy. Stocks weakened after retailer Target Inc.
TGT,
-13.14%
delivered a poorly-received earnings report, which sent its shares tumbling and weighed on other big-box retailers like Best Buy Co.
BBY,
-8.57%
Investors were taken aback particularly because Walmart Inc.’s
WMT,
+0.72%
earnings a day earlier painted a much more robust picture of the state of the U.S. consumer. “Target’s signal that a consumer spending recession was unfolding heading into the a …

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