U.S. stock markets closed sharply lower on Thursday as major technology shares sold off following fresh remarks from Federal Reserve officials about the future path of interest rates. The Nasdaq Composite dropped about 1.6%, while the S&P 500 fell nearly 1%.
The Dow Jones Industrial Average lost around 0.3%, supported by moderate gains in energy and financial stocks. Federal Reserve Chair Jerome Powell said in a speech that the path toward cutting interest rates remains “long,” emphasizing that inflation continues to stay above the Fed’s 2% target. His comments quickly dampened investor optimism and triggered renewed concerns about tighter monetary policy.
Meta Platforms shares tumbled more than 11% after the company announced plans to raise spending on artificial intelligence projects through 2025 a move that raised short-term profit concerns. Meanwhile, Alphabet Inc., the parent company of Google, jumped 8% after posting stronger than-expected quarterly results, reinforcing confidence in its competitive strength within the AI race. Analysts warn that markets could face further volatility in the coming weeks as traders await the upcoming U.S.
inflation data, which will likely determine the Fed’s next policy decision. Despite the recent pullback, many investors remain cautiously optimistic, seeing the correction as a healthy pause in a year marked by strong gains in large-cap technology and AI-related stocks.
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