Macy’s Plunges 17.68%: Are US Retailers in Real Trouble?

With an unprecedented 17.68 percent drop on Thursday, Macy’s may possibly fuel a short-term decline of all retailers in the United States. Following the plunge in the stock price of Macy’s, other major retailers in the likes of Target have started to demonstrate a lack of momentum from the strong corrective rally the U.S. stock market experienced in early January. The Macy’s Curse, Not Specific to Macy’s What drove the abrupt plunge in the stock price of Macy’s, the largest single-day drop in the company’s history, could have been unreasonably high expectations of investors in the performance of retailers during the holiday season, from Christmas to New Year’s Eve. Investors failed to recognize that many retailers, including major conglomerates in the U.S., often sell most of their shelved products with a heavy discount during the seven-day holiday season. Ostensibly, and on paper at least, retailers seemed to have generated substantially…

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