U.S. stocks ended lower on Thursday, recording losses for the third straight session as investors assessed the latest move by the Federal Reserve to combat inflation.
The Fed raised its policy rate by 75 basis points and also signalled more rate hikes in the coming period.
Shares of megacap tech and growth companies , including, Tesla Inc TSLA, Amazon.com Inc AMZN and Nvidia Corp NVDA all settled lower on Thursday.
The Nasdaq 100 fell 1.17% to close at 11,501.65 on Thursday, while the S&P 500 fell 0.84%. The Dow Jones dipped around 107 points to settle at 30,076.68 in the previous session.
Majority of the sectors on the S&P 500 closed on a lower note, with consumer discretionary and financial stocks recording the biggest decline on Thursday. However, health care stocks bucked the overall market trend, gaining around 0.5% in the previous session.
The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) fell 1.1% to 27.68 points.
What is CBOE Volatility Index?
The CBOE Volatility Index, popularly known as VIX, is a measure of the equity market’s expectation of volatility based on S&P 500 index call and put options.