The Dow Jones Industrials gave up much of yesterday’s gains, losing 607.41 points, or 1.8%, to 33,453.65.
The S&P 500 loosed 93.77 points, or 2.2%, to 4,206.40.
The NASDAQ Composite stumbled 414.26 points, or 3.2%, to 12,550.59.
E-commerce stocks were a key source of weakness on Thursday following some disappointing quarterly reports.
Etsy and eBay dropped 17% and 6%, respectively, after issuing weaker-than-expected revenue guidance. Shopify fell more than 16% after missing estimates on the top and bottom lines.
Large tech stocks were under pressure, with Facebook-parent Meta Platforms falling 4.3% and Amazon descending 5.1%. Microsoft dropped 3.5%.
On the positive side, Papa John’s gained more than 2% after reporting a stronger-than-expected first quarter.
The Fed increased its benchmark interest rate by 50 basis points, as expected, and said it would begin reducing its balance sheet in June.
However, Fed Chair Jerome Powell said during his news conference that the central bank is “not actively considering” a larger 75 basis point
rate hike, which appeared to spark a rally.
Still, the Fed remains open to the prospect of taking rates above neutral to rein in inflation
In economic data, weekly jobless claims came in slightly higher than expected and labor productivity dropped 7.5% in the first quarter for its fastest decline since 1947.
Treasury prices jumped sharply, with yields falling to 3.04% from Wednesday’s 2.98%. Treasury prices and yields move in opposite directions.
Oil prices jumped another $2.91 to $110.72 U.S. a barrel.
Gold prices hopped higher $25.30 to $1,894.10 U.S. an ounce.