After a stress-inducing tumble on Friday, the Dow Jones industrial average today served up another round of anxiety, plunging 1,500 points in midday trading — ultimately reversing some losses to end the day down 1,175 points, at 24,342.
The index’s largest single-day point decline in history is said to have a number of causes, including fear that new Federal Reserve chairman Jerome Powell will speed up interest rate hikes, slowing robust economic growth. Some market watchers are suggesting the sell-off is a necessary correction following a year of gains.
As is often the case, shoe and retail stocks moved in tandem with the market, with Foot Locker Inc. ending the day down nearly 6 percent to $45.63; Nike closing down 4.2 percent to $64.39; Under Amour in the red 4.4 percent to $11.87.
On the family-footwear side, DSW Inc. was down 4 percent to $18.80; Shoe Carnival shed 2.1 percent to $21.79; and Caleres was in the hole 3.3 percent to $27.85.
Things were also dim for already-pressured department stores: Nordstrom Inc. closed down 2.5 percent to $46.66; JCPenney ended at 5.7 percent down, to $3.34; Kohl’s Corp. gave up 3.6 percent to $61.21; and Macy’s Inc. was in the red 5.7 percent to $23.47. Just last month, Macy’s announced its plans to continue shuttering doors, noting that it had identified 11 more stores as it closes in on 100 planned closures. Meanwhile, JCPenney and Nordstrom closed at least one outpost apiece as retail grapples with digital pressures and a rising consumer preferences for experiential spending (dining and travel).
The S&P 500 also followed a tough Friday today, closing down more than 113 points, at 2,648.94. At market close, the Nasdaq Composite was in the hole more than 273 points, at 6,967.53.