Shares of Coca-Cola Co. (KO) suffered their worst day in 17 months on Thursday, as the consumer-staples industry and the broader stock market experienced a significant selloff. Growing concerns about high interest rates and a slowing job market fueled fears of potential economic setbacks in the U.S.
Decline in Stock Performance
During afternoon trading, Coca-Cola's stock slumped by 4.1%, leading the losers of the Dow Jones Industrial Average (DJIA). This marks the largest one-day decline since May 18, 2022, when the stock dropped by 7.0%. Furthermore, the stock is on track to reach its lowest closing price since December 1, 2021.
The Consumer Staples Select Sector SPDR ETF (XLP), a benchmark for the consumer-staples sector, experienced a 1.5% decrease, reaching a one-year low. Additionally, the S&P 500 (SPX) saw a 0.2% drop.
Influence of Conagra Brands Inc.
Earlier on Thursday, Conagra Brands Inc. (CAG), a branded consumer foods company and a component of the consumer-staples ETF, reported quarterly sales that fell short of expectations. They cited an "industry-wide slowdown in consumption and recent shifts in consumer behavior" as contributing factors to their underwhelming results.
While Coca-Cola shares faced significant challenges, it remains vital to monitor future developments in both the consumer-staples industry and the broader market, as they may impact stock performance.