(Reuters) – Wall Street’s stockindices fell as high as 3% Wednesday, as a rally in growth shares reversed due to concerns over economic growth. This was despite a 26% drop in the Dow Jones Industrial Average. Target After the retailer was the latest victim to rising prices, Corp shares (NYSE:).

Target reported a halving of its first quarter profit and warned that rising freight and fuel costs would cause a larger margin. The shares of Target were poised for their largest fall since the Black Monday, Oct. 19, 1987 crash. (Full-story). It happened a day following Walmart’s (NYSE:) Inc WMT.N profit forecast cut.

Recent market concerns include rising inflation, conflict in Ukraine and prolonged supply chains. Pandemic-related lockdowns in China have also been a concern. There are also prospects for tightening of central bank policy.

MARKET REACTION:

* STOCKS: Dow down 2.74%, down 3.18%, Nasdaq rose 0.368%

COMMENTS:

TIM GHRISKEY, SENIOR PORTFOLIO STRATEGIST, INGALLS & SNYDER, NEW YORK

“It’s a rather extreme reaction, but it does point out that there are inflation pressures on retailers and there are spending shifts by consumers occurring at the same time.”

“Target losing a quarter of its market cap is a concern for a company that has a strong long-term track record.”

“Overall, when times get tough, when there’s inflation in lots of categories especially in nondiscretionary categories, like gas for your car, the lower income consumers often get squeezed.”

“The consumer is getting squeezed but is not dead by any means. Investors are partially reacting to Target’s big earnings miss and it shows not so much in terms of revenues; where it missed was earnings, and that reflects inflationary pressures.”

“This is not a forgiving market, selling creates more selling. Investors want to be attracted by buyers who demand lower prices. You’ve had these wild swings both up and down. It’s hard to get investors involved given the volatility and the uncertain economic and geopolitical outlook.”

“Technicians would suggest that (an S&P 500 bear market confirmation) could bring in some buyers, so there may be some resistance. But the fundamentals will continue to deteriorate if there are more earnings announcements like we’ve gotten from Target today, showing that our worst fears about inflation and supply chain cost pressures.”

“We’re used to big positive surprises. For now, the revenues are likely to remain intact, but if the earnings fall apart there’s potential downside to the market beyond the somewhat random definition of a bear market.”

CHUCK CARLSON CHIEF EXECUTIVE OFFICER HORIZON INVESTMENT SYSTEMS, HAMMOND INDIANA

“I think it’s economic fears. You have got a host of retailers that are coming out with results that are not great, and that is one more indication of perhaps a slowdown in the economy.”

“I just wonder if people are starting to really get pinched by fuel costs – both businesses as well as consumers… When you are paying north of $5 for a gallon of gas, that’s a hammer and that’s a hammer on everybody.”