The Dow Jones Industrial Average slid more than 300 points, before rebounding to close down 1.9 percent to 12,606.30. The broader S&P 500 fell 1.4 percent to 1,401.02, while the S&P Retail Index was mangled, dropping 3.2 percent to close at 366.39.
Talbot’s Inc. topped New York Stock Exchange’s list of biggest decliners, plummeting 13.3 percent to $6.96 on concerns that its turnaround is poorly timed against current market conditions.
Tiffany & Co. also appeared on the list after reporting disappointing holiday same-store sales and slashing earnings guidance. Shares of the jewelry retailer plunging 11.2 percent to $35.08.
Coming off a stellar comp report on Thursday, teen retailer Aéropostale Inc. saw shares fall 6.2 percent to $24.49, while competitors Hot Topic and Pacific Sunwear of California sank 5.6 and 10.2 percent, respectively — all on worries that consumers will pull back spending.
While Macy’s, Sears Holdings Corp., Saks and Nordstrom all saw declines greater than 4 percent, J.C. Penney was a bright spot in the department store sector, ending the day up 0.8 percent to $37.86. Investors viewed J.C. Penney as in a better market position than its competitors.