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Stock market news live updates: Stocks sink, tech lags after Walmart profit warning

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U.S. stocks tumbled on Tuesday after Walmart's (WMT) profit warning Monday night and ahead of a rush of tech earnings and the Fed's latest policy statement on Wednesday.

At the closing bell, the benchmark S&P 500 lost 1.2%, while the Dow fell some 0.7%.

The tech-heavy Nasdaq fell 1.9%, the index's third-straight losing session and the third-straight day losses for the Nasdaq have outpaced those suffered by the S&P and Dow.

Shares of Walmart (WMT) fell over 7% after the retail giant slashed its second quarter and full-year profit outlooks late Monday, citing rampant inflation and a resulting pullback in consumer spending on discretionary items.

“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars," Walmart CEO Doug McMillon in a statement. "We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart U.S.”

Walmart’s warning sent dragged down other retailers. Amazon (AMZN), Target (TGT), and Dollar General (DG) each fell as much as 5%, 4%, and 3%, respectively.

Shopify's (SHOP) stock nosedived nearly 16% after the e-commerce giant said it was laying off roughly 10% of its global workforce after a hiring boom to meet pandemic demand for online shopping.

"It’s now clear that bet didn’t pay off," CEO Tobi Lutke said in a statement. "What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point."

Also weighing on sentiment was a disappointing report from General Motors (GM) early Tuesday that showed second-quarter results fell short of Wall Street estimates. The Detroit-based automaker saw its net income fall 40% from a year ago during the period and said it failed to deliver 95,000 vehicles due to part shortages. Shares fell nearly as much as 3%.

Elsewhere in markets, UBS (UBS) shares fell as much as 12% after the Swiss bank reported a smaller quarterly profit than analyst anticipated as market volatility weighed on investment banking revenues and the financial institution warned of a challenging second half of the year.

In economic news, the International Monetary Fund further downgraded its forecast for global growth this year and warned of a "gloomy and more uncertain" amid worse-than-expected inflation. The organization now projects the global economy will grow by only 3.2% this year, a downgrade from the 3.6% it had previously forecast in April when it cut expectations for 2022 to 3.6% from 4.4%.

Federal Reserve officials also kicked off their two-day policy meeting Tuesday and are expected to raise interest rates another 75 basis points at its conclusion Wednesday afternoon.

Federal Reserve Chair Jerome Powell is set to deliver remarks at 2:30 p.m. ET shortly after the U.S. central bank’s policy decision comes out at 2:00 p.m. ET.

WASHINGTON, DC - JUNE 22: Jerome Powell, Chairman, Board of Governors of the Federal Reserve System testifies before the Senate Banking, Housing, and Urban Affairs Committee June 22, 2022 in Washington, DC. Powell testified on the Semiannual Monetary Policy Report to Congress during the hearing. (Photo by Win McNamee/Getty Images)
WASHINGTON, DC - JUNE 22: Jerome Powell, Chairman, Board of Governors of the Federal Reserve System testifies before the Senate Banking, Housing, and Urban Affairs Committee June 22, 2022 in Washington, DC. Powell testified on the Semiannual Monetary Policy Report to Congress during the hearing. (Photo by Win McNamee/Getty Images)

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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