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US stock markets suffer worst drop since 2020, stagflation fears rise

All three US stock markets suffered their worst falls since the pandemic hit, led by the Nasdaq which finished 4.7% lower.

The Dow Jones and S&P 500 fell 3.6% and 4.0%, respectively, amid growing concerns of a stalling economy and stagflation risk.

Target, Tesla slump

Every sector was lower, with consumer staples among the biggest detractors following a collapse in discount retailer Target (NYSE: TGT). The company saw shares tumble by 25% in a single session after reporting a quarterly profit that was well short of expectations, falling to US$1 billion from US$2.1 billion the year prior. Revenue was higher, growing 4%, however, cost of sales surged amid an increase in fuel, transport and labour costs.

It was the opposite story for TJ Maxx operator TJX Co’s (NYSE: TJX) which gained 11% on a 10% jump in profits and a similar increase in revenue as consumers looked for discounted goods.

Tesla (NASDAQ: TSLA) also fell close to 7% after the E&P Index provider dropped the company from their ESG universe on governance concerns.

US stock market movers

Here’s how other popular US stocks fared overnight.

This negative lead from US stock markets is expected to send the S&P/ASX 200 (ASX: XJO) lower when the market opens this morning. For a round-up of the latest news, check out my ASX 200 morning report.

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