Stocks Bounce Back From Lows Following Retail Earnings

Investors still continue to worry over inflation and potential overheating in the market.

article-image

Source: Shutterstock

share
  • Retail earnings came in stronger with both Target and Walmart releasing higher-than-expected first quarter earnings
  • Tech stocks continued to slip Wednesday and the S&P 500 declined 1.6% at its session low

In yet another turbulent day for Wall Street, stocks closed higher than session lows Wednesday amid positive retail earnings but a broad selloff in riskier assets.  

Tech stocks continued to slip Wednesday and the S&P 500 declined 1.6% at its session low. Retail earnings came in stronger with both Target and Walmart releasing higher-than-expected first quarter earnings. 

Target exceeded expectations with earnings rising 525%. Shares rose 5.4% following the earnings report. 

Walmart also beat on earnings and revenue, with e-commerce sales increasing 37% year-over-year, even as in person shopping resumed. 

The Dow Jones Industrial Average closed 164 points lower after dipping as much as 587 points earlier in the session. 

Minutes from April’s Fed meeting revealed that officials may start to talk about easing off their current easy money policies, but only if economic data continues to improve. Investors still continue to worry over inflation and potential overheating in the market. 

Bitcoin plummeted as much as 30% to around $30,000 Wednesday before recovering around 10%. The largest digital currency traded around $40,000 at time of publication. 

Tech stocks linked to bitcoin saw the biggest declines Wednesday. Tesla lost 3%. The electric car company’s CEO, Elon Musk, is seen as a catalyst in bitcoin’s recent decline following comments he made on Twitter and the company’s announcement that they will no longer accept bitcoin as a form of payment. 

Business intelligence company Microstrategy, a firm with significant bitcoin on its corporate balance sheet, plummeted 9%. Cryptocurrency exchange Coinbase fell 7% after experiencing outages earlier in the day as users attempted to buy the dip in digital assets. 

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (14).png

Research

Credit sits at the core of DeFi’s capital stack, with money markets approaching $50B in outstanding loans. This report describes the competitive dynamics of the lending landscape, analyzing the top eight money markets (Aave, Morpho, SparkLend, Kamino, Fluid, Euler, Maple, Compound) by several metrics, including deposit composition, outstanding loans, stablecoin borrowing rates, chain dominance, net interest margin, and overall revenue.

article-image

Exchange says “essentially all” validators now run in distributed clusters, boosting decentralization and fault tolerance

article-image

Retail FOMO is back, with CEX onboarding and search terms up

article-image

The stablecoin payments processor previously raised from the likes of a16z Crypto and Archetype

article-image

Stripe and Circle are betting the plumbing of payments is ripe for disruption

article-image

A market structure bill and bipartisan support are no easy tasks, Sen. Tim Scott and SEC Chair Paul Atkins say