Stocks across global financial markets were pummeled after a wave of rate hikes from central banks, with the Federal Reserve and the European Central Bank warning of more pain to come.
U.S. equities hit session lows in the afternoon in New York, with the S&P 500 declining as much as 2.9% and the tech-heavy Nasdaq 100 falling as much as 3.7%.
Both indexes ended Wednesday in the red after Fed Chair Jerome Powell reiterated his hawkish stance and policymakers signaled a peak rate that was above market expectations. Stocks in Europe closed Thursday's session lower after the ECB's upward revision to 2024 inflation projections.
The U.S. dollar climbed the most in two months. Britain's pound fell after the Bank of England slowed its pace of monetary tightening, which investors interpreted as a sign that rates could peak at a lower level than expected. The euro dropped.
A global rally sparked by softer-than-expected U.S. consumer price index data came to an abrupt halt on Wednesday after the Fed sought to dispel hopes for a rate cut next year.
