The S&P 500 (^GSPC) fell 1.2% at the open after the index fell 2.5% the previous session, its worst one-day Fed loss since January 2021, according to Bloomberg data. The Dow Jones Industrial Average (^DJI) lost 280 points, or 0.9%, and the tech-heavy Nasdaq Composite (^IXIC) fell 1%. Meanwhile, bond yields rose, with the benchmark 10-year note moving toward 4.2% and the rate-sensitive 2-year yield above 4.7%. The US dollar index also moved up. The S&P 500’s 2.5% loss on Wednesday marked its 54th decline of 1% or more in 2022 — the worst bearish volatility since 2009, according to Charlie Bilello of Compound Advisors. US investors also had their attention on action across the Atlantic, with the Bank of England following the Fed’s move, also raising interest rates by three-quarters of a percentage point. Wednesday’s hike takes the Fed’s key policy rate, the federal funds rate, to a new range of 3.75% to 4%, its highest level since 2008. Although the move was in line with expectations, stocks they dipped after Powell said officials may raise interest rates above the 4.6% previously estimated — signaling further tightening is certain, even as the policy statement implied the hikes could be smaller in size. “The market initially viewed the Federal Open Market Committee’s (FOMC) November statement as risky, but an aggressive press conference almost completely reversed those moves due to comments that ‘the final level of interest rates will be higher than expected’ and it’s “premature to think about stopping rate hikes,” Bank of America economists led by Michael Gapen said. The FOMC statement also acknowledged the lagged effects of cumulative monetary tightening, suggesting increased attention by the rate-setting group to concerns about economic growth. The story continues WASHINGTON, DC – NOVEMBER 02: Federal Reserve Board Chairman Jerome Powell makes opening remarks during a news conference following a meeting of the Federal Open Market Committee (FMOC) at the bank’s headquarters on November 02, 2022 in Washington, DC. In a move to fight inflation, Powell announced that the Federal Reserve is raising interest rates by three-quarters of a percentage point, the sixth rate hike this year and the fourth time in a row at such high rates. (Photo by Chip Somodevilla/Getty Images) Investors are now turning their attention to the all-important jobs report at 8:30 AM. ET on Friday. Data from the labor department is expected to show payrolls rose 190,000 for October, according to Bloomberg estimates. The print, if it takes place, will mark a drop in numbers seen throughout the recovery from the pandemic, but still reflects strong hiring, with pre-COVID payrolls averaging 150,000-200,000 a month. Powell also said in his speech that “the labor market continues to be out of balance, with demand significantly outstripping the supply of available workers.” In corporate news, Elon Musk is reportedly planning to cut about half of Twitter’s workforce (3,700 of its roughly 7,500 employees), according to a Bloomberg News report — just a week after closing a late bid to buy the social media platform media. $44 billion deal. Elon Musk’s photo is seen through a Twitter logo in this picture taken October 28, 2022. REUTERS/Dado Ruvic/Illustration On the earnings side, shares of Qualcomm ( QCOM ) sank about 8% on Thursday morning after the smartphone chipmaker issued a forecast that fell short of estimates, citing macroeconomic headwinds and a COVID-19 lockdown in China. Shares of Roku ( ROKU ) fell 15% after the company warned of financial pressures and weakness in ad sales, while also forecasting a bigger-than-expected loss for the current quarter. Shares of Etsy ( ETSY ) rallied 8% in extended trading after the online marketplace reported third-quarter revenue that beat analysts’ expectations. — Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Click here for the latest Yahoo Finance platform stock trends Click here for the latest stock market news and in-depth analysis, including the events that move stocks Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
