Why Wayfair Stock Was Sinking Today
Shares of Wayfair (NYSE: W) were pulling back today as the online home-furnishings retailer got swept up in the broad market sell-off in response to a hotter-than-expected August inflation reading. As a struggling growth stock in a consumer discretionary industry, Wayfair is more vulnerable to inflation and the macroeconomic implications of it than most stocks.
As of 12:03 p.m. ET, the stock was down 10.9%. The Nasdaq was down nearly 4% at the same time.
Year-over-year inflation in August came in at 8.3%, or up 0.1% from July, while core inflation, which excludes food and energy, was up 0.6% from July, or up 6.3% over the last year. Those numbers were higher than expected, making it more likely that the Federal Reserve will hike the benchmark interest rate by another 75 basis points at its meeting next week in order to bring down inflation and cool off the economy, increasing the risk of a recession.
Source Fool.com
