In pictures: US markets plummet and these blue-chip stocks take a deep hit

US stocks posted the biggest daily drop in almost two years as investors assess the impact of higher prices on earnings and prospects for monetary policy tightening on economic growth. The dollar and US Treasuries gained amid a pickup in haven bids.

The selloff sent the S&P 500 down 4 per cent, the most since June 2020, with the plunge in consumer shares surpassing 6 per cent.

Tesla | Tesla shares closed down more than 6 per cent on Wednesday amid a broad market sell-off, wiping $12.3 billion from Musk’s wealth. The company’s stock is down more than 30 per cent this year.

This comes after the S&P 500 removed electric vehicle maker from its ESG Index as part of an annual update to the list. It said that Tesla’s “lack of a low-carbon strategy” and “codes of business conduct,” along with racism and poor working conditions reported at Tesla’s factory in Fremont, California, affected the score.

Target | Target tumbled more than 20 per cent in its worst rout in 35 years, after the retail giant reported a 52 per cent drop in profit for the first quarter. The company blamed higher expenses due to continued supply chain disruptions. Consumers also are holding back on nonessential purchases because of rampant inflation.

Walmart | Walmart reported a 25 per cent drop in quarterly earnings and cut its full-year profit outlook on as rising costs of fuel and labor hurt its budget. Walmart fell 6.6 per cent on Wednesday after posting its biggest one-day decline since 1987.

Apple | The Nasdaq 100 fell the most among major benchmarks, dropping more than 5 per cent as growth-related tech stocks sank. Megacaps Apple and Amazon.com also slid over 5 per cent. Last week, Oil giant Saudi Aramco surpassed Apple as the world’s most valuable firm.

Cisco Systems | Cisco said it expects revenue to decline in the current quarter, hurt by disruptions stemming from Chinese lockdowns and the conflict in Ukraine. The stock dropped as much as 19 per cent in post market trading, the steepest in its history.

Amazon | Treasuries rose across the board, sending the 10- and 30-year Treasury yields down more than 10 basis points. The dollar rose against all of its Group-of-10 counterparts, except the yen and Swiss franc.

The benchmark S&P 500 is emerging from the longest weekly slump since 2011, but any rebounds in risk sentiment are proving fragile amid tightening monetary settings, Russia’s attack on Ukraine and China’s COVID-19 lockdowns.

Federal Reserve Chair Jerome Powell said on Tuesday that the US central bank will raise interest rates until there is “clear and convincing” evidence that inflation is in retreat.

If the Fed raises its key rate somewhat above what it thinks is a ‘neutral’ level for the economy and stops there, that should help bring inflation down from current elevated levels, Chicago Fed President Charles Evan said.