U.S. stocks were part of a global sell-off on Tuesday, as a heavy retail week began with continued consumer resilience in the U.S., but China painted a gloomy picture for the world’s second-largest economy.
The Dow Jones Industrial Average (^DJI) fell 1% as bank stocks plummeted ahead of tighter regulation. The S&P 500 (^GSPC) fell about 1.2%, while the tech-heavy Nasdaq Composite (^IXIC) lost 1.1%. The moves added pressure on a downbeat August for stocks after indices had a rally day on Monday, with the Nasdaq rising more than 1%.
Home Depot (HD) kicked off the week of retail earnings by beating estimates, but warned of “continued pressure” on consumers as the company said customers are pulling back on home renovation projects. Target (TGT) follows Wednesday, while Walmart (WMT) reports Thursday.
Retail sales data on Tuesday morning, meanwhile, suggested continued health for US consumers. Retail sales rose 0.7% in July from the previous month, beating Wall Street estimates for 0.4% growth.
China’s continued economic woes took center stage globally as the country reported a further deterioration in the health of its economy. China’s central bank has unexpectedly cut key interest rates in a bid to boost growth in the sputtering economy. Notably, it also suspended publication of its youth unemployment figures after months of spiraling.
