US STOCKS-Wall St set to extend selloff as growth fears mount
(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.)
* Kohl's falls on full-year forecast cut
* Canada Goose jumps on upbeat profit outlook
* Futures down: Dow 1.14%, S&P 1.15%, Nasdaq 1.17% (Adds comment, details; updates prices)
By
Kohl's Corp shares tumbled 7.7% in premarket trading after the department store chain cut its full-year profit forecast, the latest U.S. retailer to flag a hit from four-decades high inflation.
On Wednesday, the S&P 500 index and the Nasdaq closed down more than 4% as growth stocks sank and dismal results from retailer Target Corp (TGT) underscored how inflation is impacting consumers' purchasing power.
"The consumer component is now starting to weaken, which
bolsters the perspective that we are indeed heading into a
recession," said
Consumer spending accounts for more than two-thirds of U.S. economic activity.
The S&P 500 is down 18.2% from its record close on
Stock markets have sold off this year as investors adjust to tightening financial conditions with the U.S. Federal Reserve raising rates to tame surging prices.
"The central worry facing investors right now is how the
Federal Reserve will or will not be able to tame inflation
without causing a recession,"
"Investors should become accustomed to significant downside and upside moves in stocks, which is common during times of tremendous uncertainty."
Goldman Sachs strategists estimated a 35% probability of the U.S. economy entering a recession in the next two years, while Wells Fargo Investment Institute has said it expects a mild U.S. recession at the end of 2022 and early 2023.
Megacap tech and growth shares such as Apple Inc (AAPL), Microsoft Corp (MSFT), Amazon.com (AMZN), Alphabet Inc (GOOG) and Tesla Inc (TSLA) slipped between 1% and 1.7%.
Morgan Stanley (MS) dipped 1.4% to lead declines among the big banks.
At
The CBOE volatility index, also known as
Among other stocks, Cisco Systems Inc (CSCO) slumped 10.6%
as the networking gear maker lowered its 2022 revenue growth
outlook due to
In a bright spot, Canada Goose Holdings Inc jumped 13% after it forecast upbeat annual earnings, encouraged by strong demand for its luxury parkas and jackets.
BJ's Wholesale Club Holdings gained 6.9% after it topped first-quarter results estimates, helped by strength in its digital business.
(Reporting by