In trading this morning, the Dow, the S&P and Nasdaq all wiped out their gains for the year. Retail stocks were hit hard just two days before Black Friday, the biggest brick-and-mortar shopping event of the year.
Many traditional retailers have reported strong sales growth quarter after quarter this year — Target reported today that sales surged 5.1% in the third quarter, for example.
Markets are jittery amid the U.S.-driven trade war, slowing global economic growth, and a cloud around Big Tech. That U.S. economic fundamentals appear strong has not seemed to matter to Wall Street investors.
Stocks also fell as members of the popular “FAANG” trade — which is made up of Facebook, Amazon, Apple, Netflix and Alphabet — fell further into bear market. Amazon, Apple and Netflix all dropped at least 1.7 percent. Alphabet’s stock dipped 0.7 percent. Collectively, these stocks have lost more than $1 trillion in market value since hitting their 52-week highs.
On Monday, the FAANG members all closed down at least 20 percent from their one-year highs, pressuring the major indexes. The S&P 500 and Nasdaq dropped 1.7 percent and 3 percent, respectively, while the Dow fell 1.6 percent.