The Dow Jones Industrial Average suffered its worst percentage decline since June 11, 2020, losing more than 1,100 points, or 3.6 percent, to close at its lowest level in. 14 months. The S&P 500 dropped 4 percent and the tech-heavy Nasdaq Composite dropped 4.7 percent. Wednesday’s sharp declines came as retailers posted their quarterly earnings, with Target shares plummeting 25 percent. Retailers said that their profits have been hampered by higher costs, slumping sales, and supply chain issues. Typically-stable bonds fell alongside stocks, as Wall Street contends with the possibility of a recession amid the market’s volatility. Federal Reserve Chair Jerome Powell has said he is confident the economy can weather higher interest rates while avoiding a recession, and that the central bank remains focused on fighting inflation even at the risk of pushing up unemployment.