FTSE 100 Live: S&P 500 slides after Target warning, Royal Mail results

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tock markets are on edge after another pummeling for Wall Street shares meant the S&P 500 suffered its worst session since June 2020.

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The US slide, which followed a profit warning from retailer Target, also left the Nasdaq 4.7% lower in a continuation of the recent heavy selling pressure.

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Today’s session in London sees results from Royal Mail, National Grid, low-cost airline easyjet and the Tesla and Amazon backer Scottish Mortgage Investment Trust.

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Weak start for FTSE 100 after S&P 500 slides

The S&P 500 fell 4% in its worst session since June 2020 as US markets responded to weak updates from retailers Target and Walmart.

Amid fears over declining consumer confidence and the impact of inflation on corporate profit margins, the Dow Jones Industrial Average also slid 3.6% and the tech-focused Nasdaq lost 4.7% in the latest heavy sell-off on Wall Street.

Target lost a quarter of its value in the retailer’s worst session since 1987 after missing expectations for the most recent quarter and lowering profit forecasts due to cost pressures. Walmart, which issued a warning the previous day, fell 7%.

Deutsche Bank analyst Henry Allen said weak housing data also fed concerns that the US consumer might not be in as strong a position as previously thought.

He said: “That’s on top of all the other concerns of late that the global economy is heading in a stagflationary direction amidst various supply-chain issues, alongside the prospect that tighter central bank policy is going to further dent growth and risks tipping various economies into recession.”

The latest Wall Street downturn means traders in Europe are expecting a weak start, with CMC Markets forecasting a decline of 44 points to 7394. The top flight closed 80 points lower last night after a late sell-off in response to the US weakness.

The S&P 500 is now facing its seventh consecutive week in negative territory, the longest run of declines for the index since 2001. Yesterday’s session saw just eight constituents end the day higher, which is the lowest number since November.

And with recessionary concerns back in focus, bond markets rallied as investors sought out safe havens. Yields on 10 year US Treasuries were at 2.90% this morning.

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Credit: www.standard.co.uk /

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