Stocks fell for a second day on Wednesday and rates soared to new heights as the Federal Reserve gave more guidance on how fast it will tighten monetary policy to fight inflation, raising concerns it may slow the economy.
The Dow Jones Industrials plummeted 144.67 to end the session at 34,496.51.
The S&P 500 dumped 43.97 points to 4,481.15
The NASDAQ Composite wilted 315.35 points, or 2.2%, to 13,888.82.
The Fed's release of its meeting minutes indicated on Wednesday afternoon that officials “generally agreed” it should shrink its balance sheet by $95 billion per month. The minutes also showed the central bank was considering larger rate hikes than its usual 25-basis-point, or quarter-point, increments.
As the Fed hikes rates, investors have begun searching for stocks with stable profits and shying away from those offering future growth. That includes the utilities, health care and consumer staples sectors — which continued to climb Wednesday, with Amgen and Johnson & Johnson rising about 2% each. Consumer staples such as Walmart, Coca-Cola and Procter & Gamble also inched slightly higher.
Tech shares fell again on Wednesday following Tuesday's losses, as investors rotated out of the group and braced for higher rates to slow the economy.
Apple, Microsoft, Amazon and Tesla contributed to the sector's decline and the NASDAQ's fall. Chipmakers Nvidia withered 6% and Marvell Technology dipped 2%, both continuing their descent.
Treasury prices fell as yields increased to 2.59%, from Tuesday's 2.55%. Treasury prices and yields move in opposite directions.
Oil prices skidded $4.85 to $97.11 U.S. a barrel.
Gold prices picked up $1.80 to $1,929.10 U.S. an ounce.