By Liz Moyer
Investing.com -- U.S. stocks fell on Wednesday after a weak outlook from Target fueled fears that inflation was going to hurt retailers this holiday season.
Target Corporation (NYSE: TGT ) shares fell more than 14% on its earnings report , in which it blamed inflation and shifting consumer spending for a drop in demand. Its early promotions for the holiday shopping season cut into profit.
U.S. retail sales rose 1.3% in October, which was more than the 1% expected after a muted September.
Investors have been clinging to any signs that inflation is cooling so the Federal Reserve can start to ease back on the size of its interest rate hikes . The market is that while interest rates will rise again next month, the Fed will raise its benchmark rate by just a half of a percentage point, rather than the 0.75 percentage point it has moved rates higher in each of its last four meetings.
Shares of home improvement retailer Lowe’s Companies Inc (NYSE: LOW ) rose after it raised its profit forecast for the year, a contrast to Target.
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