Retail stocks underperform as investors worry about valuations, holiday season earnings

Sep. 22, 2022 1:35 PM ETTarget Corporation (TGT)OSTK, W, BOOT, ETSY, CVNA, FVRR, BOXD, BIRD, RENTBy: Clark Schultz, SA News Editor2 Comments

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Retail was one of the worst performing sectors on Thursday. A combination of interest rate shock, recession worries, and a flight-to-quality has led to one of the worst sessions in a few weeks. While the Federal Reserve kicked off the negative vibe on Wednesday by signaling a longer trajectory for higher interest rates than investors had priced in - the actions of other global central banks to raise rates, a strengthening U.S. dollar, and the expectation for a promotional holiday season has combined to create a wall of worry for retailers

Notable decliners included Rent the Runway (RENT) -9.46%, Carvana (CVNA) -9.33%, Boxed (BOXD) -8.79%, Wayfair (W) -7.68%, Boot Barn (BOOT) -6.55%, Fiverr International (FVRR) -6.24%, Etsy (ETSY) -5.55%, Overstock.com (OSTK) -4.63%, Allbirds (BIRD) -4.20%, and Target Corporation (NYSE:TGT) -3.85% were some of the hardest hit names in the sector.

Read more about Target's (TGT) promotional stance ahead of the holiday season.

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