The stock market moved sharply lower on Thursday, reversing all of its gains from the previous session when the Federal Reserve raised interest rates by a half-percentage point, as volatility remains elevated and investors continue to worry about risks to economic growth.
The market recorded its worst day since 2020: The Dow Jones Industrial Average was down nearly 3.1%, over 1,000 points, while the S&P 500 lost 3.6% and the tech-heavy Nasdaq Composite 5%.
Thursday’s declines reversed all of the market’s gains from a day earlier, when investors cheered a widely anticipated half-percentage point interest rate hike from the Federal Reserve—the largest increase in over two decades.
Despite the Fed’s big announcement, stocks were back down again as investors continued to dump shares of tech companies, which have been especially hard-hit amid the wider market selloff so far this year.
Several e-commerce companies saw shares fall after disappointing first-quarter earnings on Thursday, weighing on market sentiment: Ebay lost nearly 12%, Etsy 17% and Shopify 15%.
Shares of Big Tech companies were also moving sharply lower, with Amazon and Facebook parent Meta falling 7% or more, while Microsoft lost around 4%.
Government bond yields were on the rise amid the heightened uncertainty, with the ten-year Treasury note once again trading above 3%—its highest level since 2018.