The Dow Jones Industrial Average fell over 1,100 points, or 3.6%.
The Nasdaq Composite tumbled nearly 5% and the S&P 500 4%.
|I:DJI||DOW JONES AVERAGES||30854.61||-113.21||-0.37%|
|I:COMP||NASDAQ COMPOSITE INDEX||11277.602597||-44.63||-0.39%|
All 11 of the S&P's biggest sectors fell with consumer discretionary and staple stocks leading the declines, while utilities fell the least.
|XLY||CONSUMER DISCRETIONARY SELECT SECTOR SPDR ETF||143.14||+3.13||+2.24%|
|XLP||CONSUMER STAPLES SELECT SECTOR SPDR ETF||72.77||-0.45||-0.61%|
|VPU||VANGUARD WORLD FDS VANGUARD UTILITIES ETF||150.81||-5.41||-3.46%|
Target shares tanked after disclosing rising costs will hurt profitability for the remainder of the year. This follows Walmart's lower-than-expected profit report Tuesday that was also blamed on inflation. The Fed will "have to consider moving more aggressively" if inflation that is running at a four-decade high fails to ease after earlier rate hikes, chair Jerome Powell said at a Wall Street Journal conference.
Lowe's reported a 3.8% drop in U.S. store sales due to a late spring selling season.
|LOW||LOWE'S COS. INC.||179.88||+2.52||+1.42%|
|HD||THE HOME DEPOT INC.||283.73||+4.65||+1.67%|
In commodities, U.S. oil slipped 2.5% to the $109.25 per barrel level. Gas prices rose to $4.567 per AAA, a fresh record.
In cryptocurrencies, Bitcoin fell back below $30,000 following stocks lower.
The Associated Press contributed to this report.