Shares in US retailer Target plunge 25% on inflation fears

A mild US recession for the end of 2022 and early 2023 is now the base case for Wells Fargo Investment Institute's economic expectations.

The Nasdaq and the S&P 500 dropped 3% as a rally in growth shares faded amid economic growth concerns, while Target plunged to the bottom of the S&P 500 after the retailer became the latest victim of surging prices.

Target's first-quarter profit halved and the company warned of a bigger margin hit on rising fuel and freight costs. Its shares fell 25% at one stage and were tracking their worst day since the Black Monday crash on October 19, 1987.