Federal Reserve Chair Jerome Powell’s lack of caution on surging bond yields had traders jittery as Wall Street saw a sharp decline post his commentary. Even as the fed chief reassured that they would continue to support the economy , dovish commentary on yields were the big worry.
Tech stocks were hit the hardest as Nasdaq ended 2.1% lower. Dow Jones closed shop 300 points lower but had dropped over 700 points in intra-day trade.
Nasdaq down nearly 10% from it’s February record high. With Thursday’s drop the tech heavy index has removed all gains for 2021. The S&P 500 has declined over 4% from its record high close on Feb. 12.