A forecasting miss derails Walmart and Target

This week management at Target and Walmart reported the worst earnings in recent memory, sending both stocks spiraling down. Shares of Target fell by 25%, while Walmart dropped by 11%.

Despite the shock, the news may be a decent sign for the American economy, as the primary culprit is an abrupt shift in consumer demand. The COVID-19 pandemic shifted consumer spending from services to goods as consumers dealt with lockdowns and quarantines. Many have argued that the resulting demand caused an onslaught of inflation by overloading an already fragile…