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• The Dow Jones fell 1,063.09 points, or 3.1%, ending at 32,997.97
US stocks recorded their worst trading session since 2020, erasing a three-day rally, a day after the Federal Reserve raised the interest rates by 50 basis points.
The Dow Jones Industrial Average fell 1,063.09 points, or 3.1%, ending at 32,997.97, its worst daily percentage drop since October 28, 2020.
The S&P 500 slipped by 153.30 points, or 3.6%, to finish at 4,146.87, while the Nasdaq Composite lost 647.16 points, or 5%, closing at 12,317.69, marking its worst daily percentage fall since June 11, 2020.
The 10-year Treasury yield jumped to 3.066%, its highest since November 2018.
On Wednesday, the US Federal Reserve raised the short-term benchmark interest rate by half a percentage point or 50 basis points and outlined its plans to shrink its $9 trillion asset portfolio.
The Dow surged 932 points, or 2.81%, and the S&P 500 gained 2.99% on Wednesday. The Nasdaq Composite jumped 3.19%.
CNBC quoted Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research, who said, “If you go up 3%, and then you give up half a percent the next day, that’s pretty normal stuff. But having the kind of day we had yesterday and then seeing it 100% reversed within half a day is just truly extraordinary.”
Large tech stocks had moved higher following the Fed announcements on Wednesday. On Thursday, the tech stocks erased all gains after coming under pressure.
Facebook-parent Meta Platforms (NASDAQ: FB) and Amazon (NASDAQ: AMZN) falling nearly 6.8% and 7.6%, respectively. Microsoft (NASDAQ: MSFT) fell about 4.4%, while Salesforce (NYSE: CRM) tumbled 7.1%. Apple (NASDAQ: AAPL) dropped nearly 5.6%.
Tesla Inc. (NASDAQ: TSLA) shares fell 8.3% after reports emerged that Musk intended to temporarily serve as chief executive at Twitter once the deal closes.
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