Stocks are falling Signs of slowdown in consumer spending Investors are worried about the U.S. fiscal outlook.
Target is one of the largest retailers in the United States on Wednesday Reported weak sales In the first quarter, potential releases were warned of for the rest of the year as Americans responded to U.S. tariffs by withdrawing consumption.
The company's sales fell 2.8% to $23.8 billion, down from $24.5 billion a year ago, while Target said it expects sales to fall in 2025.
Target “faced several other headwinds this quarter, including uncertainty over the five consecutive months of decline in consumer confidence (and the impact on potential tariffs),” CEO Brian Cornell said in a call with Wall Street analysts.
As of 1:47 p.m. ET, the S&P 500 index fell 61 points, or 1%, to 5,880. The Dow Jones Industrial Complex fell 628 points, or 1.5%, while the Nasdaq Complex fell 0.8%.
Target stocks fell 5.7% to $92.50 in afternoon trade.
Such weakness is more and more companies say Rising economic uncertainty Their financial prospects were clouded. Other major retailers, including Walmart, say they Plan to increase the price Offset the Trump administration’s tariffs on China and other countries.
Reducing company sales and profits may eventually hinder job growth, which has Stay resilient Experts point out that in recent months.
"Companies expect growth in consumer demand to slow down and view the outlook as unusually uncertain, so they are suspending hiring," Pantheon macroeconomics analysts said in a research note.
Some retailers benefit from the current environment as some consumers tighten their belts. Discount giant TJX, whose brands include Homegoods, Marshall's and TJ Maxx, reported Wednesday that its net sales rose by 5% in the first quarter of fiscal 2026.
Investors are still evaluating the way Republicans support Tax and expenditure bills Negotiations in the House now could impact U.S. financial situation. Moody's on Friday highlighted the government's decision when it came to a decision. Declined in the US credit rating. Weaker credit ratings will increase borrowing fees in the United States
"We don't think the downgrade itself is important, but it's a wake-up call for investors who ignore the ongoing fiscal discussions," Bank of America strategists wrote in a note.
Stocks are also feeling the pressure from higher fiscal returns in the bond market, which may affect other types of investments. Bond prices fall due to concerns that Congress may increase tax cuts Trillions of dollars in federal debt.
“Most of the bills are just extending the existing (tax rates) rather than gradually reducing them,” Adam Crisafulli, head of important knowledge, said in a note to investors. “In addition, there are some deviations that could economically harm low-income Americans. Most importantly, the legislation is expensive and will further increase debt/deficits at a time when both are already extremely unbalanced.”