By Yasin Ebrahim

Investing.com — The S&P 500 dipped into bear-market territory Friday, after an earlier rebound ran out of steam as ongoing worries about an inflation-led dent to growth offset fresh support from China to support its economy.

It fell by 2.30%, putting losses of 20% from the peak it reached in late February into bear market territory. It fell 1.9% or 600 points.

Wall Street’s red sea was led by consumer discretionary, as quarterly results from corporations continue to show the inflation impact.

Ross Stores (NASDAQ) fell more than 23% in the second quarter after its first-quarter results were below Wall Street’s estimates. The off-price retailer also cut its guidance due to rising transportation costs.

As the results of Walmart (NYSE 🙂 are less favorable, so is that of all other retailers. Target (NYSE: ) also raised concerns about the inflation impact.

Deere (NYSE) reported on its top-line miss and highlighted inflation and supply chain issues, sending shares up to 13%.

Foot Locker Inc (NYSE: ) rose more than 3% following a footwear retailer’s better-than expected profit. This helped to outweigh softer sales.

The ongoing worries about inflation offset early-day optimism after China’s move to cut a key lending benchmark to support its economy, which has been impacted by recent lockdown measures in Shanghai and elsewhere, eased fears about slowing global growth.

“Investors appear more optimistic this morning after a volatile week as China takes its latest step to bolster the country’s economy,” Stifel said in a note earlier on Friday.

The tech industry gave up on early-day gains in order to fuel the market, led by Apple (NASDAQ;) and Google (NASDAQ.)