US Stock Market: DJIA, S&P500, Nasdaq and Russell ended in red on Wednesday

Stocks slumped significantly on Wall Street on Wednesday, wiping away most of the week’s gains, as investors were worried by further evidence of inflation’s impact on businesses and another bleak forecast for the global economy.

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The losses come after a string of rocky days for markets, with key indexes frequently wobbling between gains and losses by the hour. Investors are still trying to figure out how increasing interest rates and inflation will affect the economy.

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The S&P 500 index dropped 44.91 points, or 1.1%, to 4,115.77. The benchmark index managed to maintain its weekly rise. It has made a loss in eight of the past nine weeks.

The Dow Jones Industrial Average fell 269.24 points, or 0.8%, to 32,910.90 and the Nasdaq fell 88.96 points, or 0.7%, to 12,086.27.

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Banks and industrial companies were among the biggest weights on the broader market. Wells Fargo fell 1.8% and Union Pacific shed 3.1%. Some technology stocks also fell. Intel lost 5.3%.

Smaller company stocks fell more than the rest of the market. The Russell 2000 fell 28.56 points, or 1.5%, to 1,891.01.

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Bond yields rose. The yield on the 10-year Treasury, which banks use to set rates on mortgages and other loans, rose to 3.02% from 2.97% late Tuesday.

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Inflation continues to sting businesses. Lawn care products company Scotts Miracle-Gro slumped 8.9% after slashing its profit forecast for the year because retailers aren’t replenishing orders as expected.

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Retailers have been warning that inflation is crimping sales as consumers shift to either spending on services or focusing on necessities rather than purchasing otherwise discretionary items, like electronics.

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The impact of inflation has only been worsened by Russia’s invasion of Ukraine, which has put more pressure on energy and food prices since February. U.S. crude oil prices rose 2.3% on Wednesday and are up 63% for the year, while wheat prices are up 39% in 2022. Supply chains have also gotten tighter following a series of lockdowns for Chinese cities fighting COVID-19 cases.