Walmart profit downgrade sends stocks sliding amid ongoing recession fears

A gloomy projection from global retailer Walmart this week sent stocks sliding as economists and analysts continue to sound warning bells about a potential recession on the horizon.

Walmart in an earnings update posted to its website said it was "lower[ing] profit outlook for Q2 and FY23," with "adjusted earnings per share" and "operating income" both expected to see potential double-digit slides. 

Stocks dropped following that report, with the Dow, NASDAQ and S&P 500 all notching declines on Tuesday. Walmart itself experienced its sharpest plunge in months, falling from about $132 per share at close on Monday to $121 on Tuesday afternoon. 

Other major retailers such as Target and Nordstrom saw single-digit yet pronounced drops in shares following the Walmart projects.

The modest turmoil comes amid larger fears of a looming U.S. recession, with supply chain crises, heavy inflation and sky-high fuel prices all driving fears of economic contraction.