US stocks were part of a global sell-off Tuesday as a retail-heavy week began by showing continued consumer resilience in the US, but China painted a grim picture for the world's second-largest economy.
The Dow Jones Industrial Average fell 1% as bank shares tumbled amid the prospect of stricter oversight. The S&P 500 fell about 1.2%, while the tech-heavy Nasdaq Composite slipped 1.1%. The moves added pressure to a glum August for stocks after the indexes had a rebound day on Monday, with the Nasdaq rising over 1%.
Home Depot (HD) kicked off retail earnings week by beating estimates but warning of “continued pressure” on consumers, as the company said customers are pulling back on home-renovation projects. Target (TGT) is up next on Wednesday, while Walmart (WMT) reports Thursday.
Retail sales numbers out Tuesday morning, meanwhile, suggested continued health for the US consumer. Retail sales rose 0.7% in July from the previous month, more than Wall Street's estimates for 0.4% growth.
China's continued economic woes took center stage globally, as the country reported a further decline in health for its economy. China's central bank unexpectedly cut a range of key interest rates in a bid to spur growth in its sputtering economy. Notably, it also suspended the publication of its youth jobless data after months of spirals.
