(CNBC) U.S. equities closed lower on Thursday as retail stocks fell sharply on the back of Macy’s weak quarterly results.

“When you look at retail and consumer spending, they reignite concerns about the consumer,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. “The U.S. economy is consumer-driven whether you like it or not.”

The S&P 500 declined 0.2 percent with Macy’s and Nordstrom dragging the index lower. The SPDR S&P Retail ETF (XRT) shed 2.7 percent as Macy’s shares tanked by 17 percent.

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