US stocks tumble as earnings add to worries about the economy ahead of more Fed rate hikes
- US stocks ended lower Tuesday as Walmart's earnings warning added to growing alarms about the economy.
- The world's largest retailer cut its profit forecast, citing high inflation and changing consumer habits.
US stocks closed lower Tuesday, extending losses from earlier in the session, as earnings news raised more fears about the economy ahead of another big rate hike from the Federal Reserve.
Walmart, the world's largest retailer, trimmed its profit projections late Monday as high inflation turns consumers more cautious on spending. The sour outlook added to the shifting economic picture on Wall Street, with retail rivals like Amazon and Macy's set to report earnings next week.
Meanwhile, the Fed wraps up its meeting Wednesday, and Wall Street is expecting another 75-basis-point rate hike as policymakers continue their focus on cooling down inflation.
Here's where US indexes stood shortly after the market close at 4:30 p.m. on Tuesday:
- S&P 500: 3,920.89, down 1.16%
- Dow Jones Industrial Average: 31,761.38, down 0.71% (228.66 points)
- Nasdaq Composite: 11,562.57, down 1.87%
A Morgan Stanley wealth-management executive told Bloomberg TV that the recent market uptick is merely a bear-market rally and that significant dips may still lie ahead.
The Fed's preferred recession indicator is signaling turmoil, as the bond market's three-month bill premium has slumped 95 basis points in July.
The US is the top exporter of liquefied natural gas so far this year and has increased outbound flows 12%, with 71% of the LNG making its way to Europe and the UK.
Oil prices gave up earlier gains to turn lower, with West Texas Intermediate crude falling 1.6% to $95.27 a barrel. Brent crude, the international benchmark, fell 0.87% to $104.04 per barrel.
Gold ticked down 0.2% at $1,716 an ounce. The 10-year yield rose 1.5 basis points to 2.805%.
Bitcoin fell 4% to $20,859.