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Live Stock Market News Updates: Stocks Continue Fed-Induced Selling

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US stocks extended losses on Thursday after the Latest Federal Reserve Policy Announcement and subsequent comments from Chairman Jerome Powell messed up markets.

The benchmark S&P 500 fell 0.7%, while the Dow Jones Industrial Average lost about 150 points, or 0.5%. The tech-heavy Nasdaq Composite slipped 1%. The moves follow a sell-off where the S&P 500 and Dow fell about 1.7% each and the Nasdaq plunged 1.8%.

The losses marked the S&P 500’s 29th decline this year between 1% and 2% — the largest since 2008, with 34 such declines for the index, per year. data from Compound Advisors.

According to economic data, first-time jobless claims rose to 213,000 in the week ending Sept. 17, from a downwardly revised 208,000 the week before — the lowest since May, the Labor Department said Thursday:. Economists asked for 217,000 claims, according to consensus estimates prepared by Bloomberg.

Elsewhere in the wake of the Fed’s decision, the 2-year Treasury yield held near 4.1%, its highest level since 2007, while the 10-year Treasury remained close to 3.5%, its highest level since 2011. .

On Wednesday, officials of the US central bank increased interest by 75 basis points for the third time in a row, bringing the Federal Funds rate to a new range of 3.0% to 3.25% from a current range between 2.25% and 2.5%.

Policymakers also expect interest rates to rise higher than before and to maintain that level, forecasting the fed funds rate to rise to 4.4% by the end of this year and to 4.6% by the end of 2023. That’s an increase of 3.4% for this year and 3.8% earlier.

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Jerome Powell, chairman of the board of the US Federal Reserve, pauses during a news conference after the Federal Reserve raises its target rate by three-quarters of a percentage point in Washington, US, Sept. 21, 2022. REUTERS/Kevin Lamarque

“With the new interest rate forecasts, the Fed is working on a hard landing – a soft landing is almost impossible,” said Principal Global Investors Chief Global Strategist Seema Shah. Powell’s admission that there will be below-trend growth for a period of time should be translated as the central bank’s ‘recession’.

In company news, shares of Lennar (LEN) rose nearly 2% even as the homebuilder said its third-quarter results were impacted by higher rates.

KB home page (KBH) was also a mover after the company cited headwinds from ongoing supply chain constraints and warned that these issues could impact fourth-quarter results. Shares fell nearly 4% at opening.

On Thursday’s earnings list, Costco (COST), Darden Restaurants (DRI), fact set (FDS), and FedEx (FDX), which warned about results last week about the possibility of a global recession that caused stocks to gain momentum on the worst day for the shipping giant.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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