U.S. stocks fell in a turbulent session Wednesday after three straight days of losses placed the major averages on pace for monthly declines.
The S&P 500 sank 0.5%, while the Dow Jones Industrial Average tumbled 190 points, or about 0.6%. The tech-heavy Nasdaq Composite edged down 0.2%. A volatile run for stocks in recent weeks has erased much of the summer’s relief rally, with the S&P 500 officially wiping out half of its bounce since mid-June.
Shares of Bed Bath & Beyond (BBBY) tanked nearly 22% at the start of trading Wednesday after the home-goods retailer announced in an anticipated strategic update that it would lay off staff and shutter approximately 150 stores as part of a turnaround effort for its struggling business. The company also said it secured more than $500 million of new financing.
The announcement came shortly after Bed Bath & Beyond reported in a regulatory filing that it may offer, issue and sell shares of its common stock from time to time and may use any proceeds from potential stock sales to repay short-term debt, among other purposes.
Elsewhere in markets, social media giant Snap (SNAP) was in the spotlight after confirming reports the company will lay off 20% of its workforce of more than 6,400 employees and discontinue or reduce investment in certain projects as part of a broader restructuring effort. Shares rose 6% Wednesday morning.
“The scale of these changes vary from team to team, depending upon the level of prioritization and investment needed to execute against our strategic priorities,” CEO Evan Spiegel said in a statement. “The extent of this reduction should substantially reduce the risk of ever having to do this again, while balancing our desire to invest in our long term future and reaccelerate our revenue growth.”
Snapchat on the App Store displayed on a phone screen and a laptop keyboard are seen in this illustration photo taken in Krakow, Poland on August 10, 2022. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
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