On Tuesday, two different pieces of news about consumer spending combined to drag down broad swaths of the stock market. This was particularly apparent in a number of consumer-facing stocks.
For example, vegetarian food specialist Beyond Meat (NASDAQ: BYND) was off by as much as 9.3%, budding coffee chain Dutch Bros (NYSE: BROS) was down as much as 7.1%, and milk alternative provider Oatly (NASDAQ: OTLY) slipped by as much as 6.2%. At the end of the session, the trio were still trading lower, down 8.8%, 7.0%, and 5.1%, respectively. For context, the broader market indexes also ended lower, as the S&P 500 gave up more than 1.1% on the day, while the Nasdaq Composite shed nearly 1.9%.
To be clear, none of these consumer goods purveyors had anything in the way of company-specific news driving the declines. Rather, alarm bells sounded from two different quarters of the retail sector, suggesting that inflation is having a bigger effect on purchasing behavior than previously realized -- which could ultimately affect consumer goods stocks.
For further details see:
Why Beyond Meat, Dutch Bros, and Oatly Stocks Plunged On Tuesday