The Dow Jones plunged more than 551 points on Tuesday, dragged down by disappointing Target news and concerns about the retail sector in general ahead of the pivotal holiday season.
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Tuesday’s slide compounded Monday’s losses on the Dow, resulting in a two-day losing streak of about 950 points, or 4 percent. Stocks fell 2.2 percent on the Dow on Tuesday alone.
All of the major stock indices are now in negative territory for the year, after posting record highs. The S&P 500 Index hit a level nearly 10 percent below its September record close before recovering.
The turbulent and tech-centric Nasdaq Composite Index was almost 14 percent below the closing high it reached in August.
Target stock tumbled 11 percent after reporting weaker-than-expected earnings for the third quarter. The news spooked investors and, combined with disappointing earnings from Victoria’s Secret parent company L Brands and Kohl’s, provoked worry just ahead of Black Friday. Retail stocks, in general, took a hit.
As recently as September, Target had said it would be hiring 120,000 seasonal workers for the holiday shopping season.
The Nasdaq ended the day 120 points — or 1.7 percent — lower, at nearly 6,909 points.
All eyes were on Apple, whose shares were down 4.8 percent to close at $176.98, adding to previous losses amid reports of weakened iPhone demand.
Goldman Sachs issued a bearish report on Tuesday morning, in line with other reports. The company recently announced it would no longer disclose unit sales of its iPhones.