Stocks are closing lower on Wall Street Tuesday after Walmart warned that inflation is negatively impacting American consumers' spending power.

The S&P 500 index lost 1.2%, the Dow Jones Industrial Average fell 0.8% and the Nasdaq Composite dropped 1.9%.

Walmart shares plunged after the retail giant cut its profit outlook for the second quarter and the full year, saying rising prices on food and gas are forcing shoppers to cut back on more profitable discretionary items, particularly clothing.

Technology and communication stocks were also among the biggest weights on the market.