NEW YORK, May 20 ― Wall Street ended lower after a volatile session yesterday, with Cisco Systems slumping after giving a dismal outlook, while investors fretted about inflation and rising interest rates.

Shares of Cisco slumped 13.7 per cent after the networking gear maker lowered its 2022 revenue growth outlook, taking a hit from its Russia exit and component shortages related to Covid-19 lockdowns in China.

Apple and chipmaker Broadcom declined 2.5 per cent and 4.3 per cent, respectively, and weighed on the S&P 500.

“The reality is that inflation is running hot and interest rates are rising,” said Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis, Minnesota. “Until you get that inflation rate to start slowing, we're going to have increased volatility, and in our view that continues through throughout most of the summer months.” Twitter climbed 1.2 per cent after Bloomberg reported that company executives told staff that Elon Musk's US$44-billion (RM193.7 billion) deal was proceeding as expected and they would not renegotiate the price.

The S&P consumer staples index fell 2 per cent to its lowest level since December as retail firms face the brunt of rising prices hurting the purchasing power of US consumers.

Kohl's Corp became the latest retailer to flag a hit from four-decades high inflation as the department store chain cut its full-year profit forecast.

Its shares, however, rebounded over 4 per cent after slumping 11 per cent in the previous session due to dismal results from Target Corp.

The S&P 500 is down about 18 per cent from its record close on January 3 as investors adjust to strong inflation, geopolitical uncertainty stemming from the war in Ukraine and tightening financial conditions with the US Federal Reserve raising rates.

A close of 20 per cent or more below its January record high would confirm the S&P 500 has been in a bear market since hitting that peak, according to a widely used definition.

Goldman Sachs strategists predicted a 35 per cent chance of the US economy entering a recession in the next two years, while the Wells Fargo Investment Institute expects a mild US recession at the end of 2022 and early 2023.

The S&P 500 declined 0.58 per cent to end the session at 3,900.79 points.

The Nasdaq declined 0.26 per cent to 11,388.50 points, while the Dow Jones Industrial Average declined 0.75 per cent to 31,253.13 points.

Yesterday's mixed performance followed a drop of over 4 per cent in the S&P 500 on Wednesday, the benchmark's worst one-day loss since June 2020.

The CBOE volatility index, also known as Wall Street's fear gauge, fell to 29.5 points yesterday, after hitting its highest level since May 12 earlier in the session.

Canada Goose Holdings Inc jumped almost 10 per cent after it forecast upbeat annual earnings, encouraged by strong demand for its luxury parkas and jackets.

Volume on US exchanges was 12.7 billion shares, compared with a 13.4 billion average over the last 20 trading days.

Advancing issues outnumbered declining ones on the NYSE by a 1.15-to-1 ratio; on Nasdaq, a 1.31-to-1 ratio favoured advancers.

The S&P 500 posted 1 new 52-week highs and 43 new lows; the Nasdaq Composite recorded 12 new highs and 326 new lows. ― Reuters