Wall Street suffers worst day since 2020

STORY: U.S. stocks fell out of bed Thursday, suffering their worst day since the early days of the global health crisis in 2020, and erasing the previous session's gains following the Federal Reserve's rate hike… as investors re-assessed what a tightening U.S. central bank means for Wall Street and Main Street.

The Dow dropped more than 1,000 points to end 3% lower. The S&P 500 fell more than 3.5%, while the Nasdaq lost a whopping 5%, the index now down 24% since its peak in November.

Adam Coons is a portfolio manager at Winthrop Capital Management.

“The market is in an enormous amount of uncertainty, and uncertainty is one of the biggest killers of any market. And, so, the fact that we are uncertain about when inflation's going to do, what the Fed is going to do in reaction to inflation, and then ultimately how that impacts global growth is what's really driving markets down today.”

Technology megacaps cratered, including Google-parent Alphabet, Apple, Meta Platforms and Amazon.com.

But it wasn't just high-growth stocks, as the selloff hit all areas of the market. Airlines, banks and even energy stocks lost ground Thursday.

Weighing heavily on the S&P 500 was Etsy and eBay, after both forecast second-quarter revenue would be below Wall Street's estimates.

One of the few stocks in positive territory was Twitter, after a report said Elon Musk was expected to become the temporary CEO after closing his $44 billion takeover of the social-media company. The billionaire also revealed on Thursday that Oracle's co-founder Larry Ellison was among investors that would back his buyout of Twitter.

Meanwhile, shares of Tesla dropped more than 8%, indicating that investors may be worried Musk's increased involvement at Twitter could keep him from his duties at the electric car maker.

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