China News Agency, New York, May 18 (Reporter Wang Fan) Following Wal-Mart's report of profit data that surprised the market the day before, Target, a large US department store retailer, announced a quarterly profit that was far less than expected on the 18th, stimulating the market. Market worries about the economy intensified.

On the same day, the U.S. stock market tumbled across the board, with the Dow Jones Industrial Average falling more than 1,100 points.

　　Target said in its earnings report that the company's latest quarter net profit fell more than 50% from a year earlier due to rising costs.

The company's earnings per share were just $2.19, well below the consensus estimate of $3.92.

Shares of Target fell 24.93% for the day after the earnings report, the biggest one-day drop for the stock since 1987.

　　As of the close on the 18th, among the three major stock indexes in New York, the Dow fell 1164.52 points, or 3.57%, to close at 31490.07; the Nasdaq Composite fell 566.37 points, or 4.73%, to close at 11418.15; the S&P 500 fell 165.17 points, or 4.04 percent, to close at 3923.68.

　　The Wall Street Journal said that a day earlier, Walmart reported a nearly 25% year-on-year drop in its latest-quarter net profit, which has made investors aware of the challenges facing large U.S. companies.

Target's financial report "shot an arrow into the heart of the retail industry", causing a huge shock in the market, and the stock prices of many companies including Costco and Best Buy plummeted.

Analysts pointed to supply chain disruptions, rising costs and high inflation as the main reasons for the sharp drop in profits for these companies.

　　Bloomberg quoted Goldman Sachs Group CEO Su Dewei as saying that the U.S. economy is likely to fall into recession, and Goldman Sachs clients are preparing for slowing economic growth and falling asset prices, all because high inflation has burdened the economy.

According to Goldman Sachs economists, the probability of a recession in the United States in the next 12 to 24 months has reached at least 30%.

　　On the 17th, U.S. Federal Reserve Chairman Powell once again stated that the Fed will continue to promote interest rate hikes, if necessary, to raise interest rates above the neutral level until inflation falls in a "clear and convincing manner".

Powell said the process of lowering inflation could be painful, but "returning price stability is an unconditional need."

(Finish)