WACO, Texas (FOX 44) – U.S stocks fell sharply and the Dow slides more than 1,100 points, the lowest it’s been since 2020.

“What we have right now is the market. It is somewhat spooked by the earnings report from retailers that are coming in a bit below what people were expecting,” says Dr. Ray Perryman with the Perryman Group.

Dr. Ray Perryman with The Perryman Group says people are concerned that inflation is taking a bigger toll on the economy than they thought and that translated to a big drop in the market today.

“We had had a big increase a few days ago. We may have waited a couple of days beyond this with the next round of statistics to get released,” says Dr. Perryman.

Some people are worried that the recent problems on Wall Street signal a recession is on the way.

“A lot of speculation right now about a recession. Is it possible? Certainly. Do I think it’s going to happen? I don’t. We’re seeing a lot of momentum right now, frankly, in retail sales,” says Dr. Perryman.

Dr. Perryman says the last time we saw a recession was back in 2020.

“Quick downturn in terms of the, from the pandemic. And we came back [fairly rapid]. The U.S. has regained almost all the jobs, Texas is more than regained its jobs as have a number of other states,” says Dr. Perryman.

For those who are interested in investing in stocks.

“Look for things that are going to be out there ten, 20 years in the future, driving where we’re going and try to find good, solid companies,” says Dr. Perryman.

As for the future of the US economy?

“I would say I have confidence in the long term future of the us economy. And consequently, stocks should rise to reflect that over time and profitability should increase over time,” says Dr. Perryman.