Shares of U.S. retailers drove Wall Street lower on Tuesday after Walmart warned that higher inflation would hurt its profits.

The broad S&P 500 stock index lost 1.2%, with cyclical consumer stocks suffering the steepest declines.

Walmart’s share price fell 7.6% after the big-box retailer issued its second profit warning in 10 weeks.

In an update after Monday’s closing bell, he said rising fuel and food prices were weighing on demand for less essential items such as clothing.

The tech-heavy Nasdaq Composite Index fell 1.9%. Recession fears and jitters ahead of earnings updates from some of the world’s biggest tech companies have combined to darken the market mood.

In Europe, the euro weakened against the dollar and government bonds rallied after Russia decided on Monday to further cut gas supplies to the EU and the IMF cut its forecast of global growth.

The common currency fell 1% to $1.012, after falling to par with the US dollar earlier this month, as energy security concerns linked to the war in Ukraine heightened worries over a recession. In the region.

“Geopolitical developments in Ukraine have exacerbated inflationary dynamics,” said Candice Bangsund, multi-asset portfolio manager at Fiera Capital.

“The eurozone economy looks particularly vulnerable, given its dependence on Russian energy,” she added. “Thus, the outlook for the eurozone has deteriorated alongside the surge in natural gas prices.”

The yield on the 10-year German Bund, the benchmark for eurozone borrowing costs, fell 0.09 percentage points to 0.87%, according to Tradeweb data. Bond yields fall as prices rise.

Learn more about today’s market movements here.