The Dow Jones index fell 0.12% to 33,553.83 points, the tech-heavy Nasdaq lost 1.54% to 11,183.66 points and the broader S&P 500 index fell 0.83% to 3,958.79 points.

Among the positive news of the day, retail sales rose at a faster pace than expected in October at +1.3% against +1.2% expected.

But this increase is notably attributable to the return of an increase in gasoline prices at the pump which pushed up service station sales by 4.1% over the month.

"Retail sales were not bad but the problem came from the results of large distributors which dragged down other distributors," Adam Sarhan of 50 Park Investments told AFP.

Thus, the Target department store chain recorded lower than expected quarterly profits and the brand revised its sales targets for the end of the year celebrations downwards.

Target also said it has a cost reduction plan over the next three years.

The stock took a hit, losing 13.12%, while other chain stocks followed such as electronics specialist Best Buy (-8.54%) or semi-wholesale chain Costco ( (0.45%).

Lowe's stores, devoted to home improvement, fared better (+2.99%) after quarterly profit and better-than-expected sales.

Auto Parts, an auto parts chain, fell 15.23% after disappointing quarterly results and lackluster projections.

“Investors are now focusing on distributor accounts and consumer appetite going forward,” commented Adam Sarhan.

"Because retail sales tell us about the past, but investors are interested in what will happen. They want to ensure that the consumer will continue to buy despite high inflation and rising interest rates. on credits," he continued.

On the technology side, component and semiconductor makers suffered and dragged down the Nasdaq.

Micron Technology has warned that it will cut production of chip wafers, which are used in the manufacture of many electronic devices, citing a slowdown in demand.

The stock fell 6.70%.

Nvidia, the maker of graphics cards for video games in particular, closed down 4.54%, shortly before announcing its results after the close.

The bout of weakness in semiconductors also affected AMD (-4.81%), Qualcomm (-4.20%), Intel (-3.84%) but also Tesla (-3.86%).

Among the macroeconomic news that affected the indices, US industrial production fell slightly in October (-0.1%) and that of September was revised sharply downwards.

"The strength of retail sales despite higher borrowing costs is encouraging, but manufacturing activity is slowing slowly succumbing to general malaise," said Paul Ashworth of Capital Economics.

UK inflation soared to 11.1% YoY in October, a new 41-year high, driven by a further rise in energy costs.

The Uruguayan payments company DLocal, listed on the Nasdaq, saw its share collapse by more than 50% to 10.46 dollars after an investment fund indicated that it was taking a short position on the title.

On the bond market, yields on 10-year Treasury bills fell to 3.69% from 3.76% the day before.

One of the governors of the American central bank (Fed) on Wednesday expressed support for a slower rate hike at the next meeting in mid-December, citing an increase of half a percentage point, against three - quarter points at the last meetings.

© 2022 AFP