U.S. stocks plunged on Wednesday after a weak-than-expected retail sale report gave investors a reality check that the economy is not yet ready to rebound, Xinhua reported.
The market halted a two-month rally with Dow Jones losing over 180 points and Nasdaq shedding 3 percent.
The U.S. Commerce Department reported that U.S. retail sales dropped for a second consecutive month in April. The 0.4 percent decline in April, much worse than the flat reading economists had expected, followed a 1.3 percent plunge in March.
The weak retail sales data spurred concerns that rising unemployment rate and falling home values would cut further into consumer spending, which accounts for two-thirds of U.S. economy activity.
More gloomy news hit the market from major retailers. Macy's Inc. reported that its first-quarter loss widened to 88 million U. S. dollars. Its shares fell 83 cents to 11.52 dollars. Target Corp. and Nike Inc. shares also dropped.
The Dow Jones fell 184.22 points to 8,284.89. Broader indexes also tumbled. The Standard & Poor's 500 index dropped 24.43 to 883. 92 and the Nasdaq lost 51.73 to 1,664.19.
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