Gap, Inc. (NYSE: GAP) saw its stock price plummet by 5.01% during intraday trading on Thursday. The sharp decline occurred as the broader market faced significant selling pressure.

The drop aligns with a sector-wide selloff in U.S. consumer and retail stocks. Reports indicate the decline is driven by escalating concerns over the Middle East conflict, which has entered its sixth day. The situation has raised fears of renewed inflation pressures, potentially complicating the Federal Reserve's monetary policy decisions. Rising oil prices, fueled by disruptions to shipping and manufacturing, are cited as a key factor that could dampen consumer spending.

Adding to investor caution, Gap is scheduled to release its fourth-quarter earnings results after the market closes on the same day. Analyst consensus points to expected quarterly earnings of 45 cents per share, a decline from 54 cents per share reported in the same period last year. This anticipation of weaker financial performance may have contributed to the pre-earnings negative sentiment among traders.