Markets Fall on Home Depot Warning, Debt Talks

Markets Module: May 16, 2023

Key Takeaways

  • U.S. equities dropped on Tuesday, May 16, 2023 as Home Depot’s revenue warning raised concerns about economic growth, and debt ceiling talks continued.
  • Retail sales rose less than expected, adding to the drag on the sector.
  • Tech stocks advanced, with Amazon shares up for the 10th time in the past 11 days.

U.S. equities fell as Home Depot’s (HD) revenue warning raised concerns about economic growth, and as President Biden and congressional leaders held negotiations about raising the federal debt ceiling as the deadline to avoid a government default nears. 

Almost all the stocks in the Dow were in negative territory. Home Depot shares dropped as the biggest U.S. home improvement retailer slashed its 2023 sales guidance. That news, along with a much smaller-than-expected rise in April retail sales, sent shares of others in the retail sector lower, including Nike (NKE), Walmart (WMT), Macy’s (M), Lowe’s (LOW) and Tractor Supply (TSCO). Shares of online shopping sites Etsy (ETSY) and eBay (EBAY) tumbled.

The potential for a slowing economy dragged down shares of Chevron (CVX) and other oil producers. Shares of streaming services, including Walt Disney (DIS), Warner Bros. Discovery (WBD) and Paramount Global (PARA), sank.

Horizon Therapeutics (HZNP) shares cratered after the Federal Trade Commission (FTC) said it would oppose Amgen’s (AMGN) $27.8 billion acquisition of the biopharmaceutical firm. Amgen shares also declined.

Tech stocks advanced. Amazon (AMZN) shares rose for the 10th time in the past 11 sessions. IBM (IBM), Microsoft (MSFT), and Salesforce (CRM) were the only stocks in the Dow in the green. Alphabet (GOOGL) shares jumped 2.5% as billionaire Bill Ackman’s Pershing Square Capital Management hedge fund purchased 10.3 million shares in the quarter. Warren Buffett’s Berkshire Hathaway (BRK.A) bought 10 million shares of Capital One Financial Corporation (COF) in the first three months of the year, and shares of the bank were up.

Oil and gold futures slid. The yield on the 10-year Treasury note gained. The U.S. dollar rose against the euro, pound, and yen. Prices for major cryptocurrencies were down.

S&P 500 Gainers Losers May 16, 2023
Do you have a news tip for Investopedia reporters? Please email us at
Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.