The benchmark S&P 500 index posted its worst one-day loss since June 2020.
Target’s shares plunged 25% after its first-quarter profit halved, its biggest loss since the Black Monday crash on October 19, 1987.
Target’s results came a day after rival Walmart cut its earnings forecast.
Shares of major interest rate-sensitive growth companies extended losses and pushed the Standard & Poor’s 500 and Nasdaq indexes lower, and Tesla, Nvidia, Amazon, Apple and Microsoft closed sharply lower.
The eleven sectors listed in the Standard & Poor’s 500 declined, led by the shares of consumer products companies.
Financial markets have been hit by rising inflation, the war in Ukraine, supply chains and shutdowns in China and tightening monetary policy from central banks, which are raising concerns about a global economic slowdown.
According to preliminary data, the Standard & Poor’s 500 ended trading down 163.59 points, or 4.00%, to 3925.18 points, and the Nasdaq Composite Index plunged 561.50 points, or 4.69%, to close at 11423.03 points.
The Dow Jones Industrial Average closed 1148.11 points, or 3.52%, to 3,1506.48 points.