Home Depot below expectations outlook drags on S&P, Dow Jones, Nasdaq
ALBWABA – The Dow Jones Industrial Average (Dow) and Standard and Poor 500 (S&P 500) indexes fell 1.01 percent and 0.64 percent, respectively, after U.S.-based Home Depot reported lower-than-expected forecasts for 2023, Reuters reported Wednesday.
The Nasdaq Composite also dropped by 0.18 percent, or 22.16 points, to 12,343.05 points. The Dow and S&P 500 indexes declined to 33,012.14 and 4,109.9 points, respectively.
Home Depot’s stocks fell 2.15 percent, having cut annual sales forecasts and projected lower profits for the year, in line with official forecasts.
The Department of Commerce reported retail sales increased by 0.4 percent in April, short of the anticipated 0.8 percent.
However, core retail sales rebounded, with the exception of cars, gasoline, construction material, and food services, according to Reuters.
Recent data indicated an economic slowdown in the U.S. following a series of interest rate hikes by the Federal Reserve Board (the Fed), to curb high inflation.
So far, inflation data indicate that the rate hikes may have worked, but while this issue broils, another problem is building up, the U.S. debt crisis.
The U.S. government and Congress have been engaged in negotiations over the raising U.S. debt ceiling ahead of June 1, the deadline for the U.S. to pay its bills.
Despite having highlighted the possibility of rate cuts, the Fed also made it clear not to expect any such cuts any time soon.
