The Dow’s losses on Thursday came mainly from JPMorgan, Goldman Sachs and American Express declines, while energy, materials, and financials were among the S&P 500′s worst-performing sectors. Mosaic shares shed 5.7%, while energy companies Halliburton, Diamondback Energy and EOG Resources plummeted more than 3% each.
Big tech stocks were mixed on Thursday, with information technology surging nearly 1%. Shares of Apple added 2%, and Nvidia was up more than 1%. Meta Platforms and Salesforce plummeted.
“We think more equity downside is likely, primarily because earnings expectations are too high,” wrote Citi’s Jamie Fahy.
“The takeaway for investors is that Fed policy remains data-dependent and the central bank will continue on an aggressive tightening path until inflationary pressures peak decisively,” strategists at BCA Research wrote in a note. “Persistent price pressures call for another jumbo hike at the July 26-27 FOMC, but there is still room for the data to improve before the September meeting, 8 weeks later.”