Finance

U.S. stock indexes fell sharply following the Federal Reserve's hawkish signals, with the S&P 500 and Nasdaq experiencing their steepest daily declines in a week. Major technology companies like Microsoft, Amazon, and Nvidia saw significant losses, weighing heavily on the broader market. SpaceX also recorded its first daily loss since its recent high-profile initial public offering.

Bond yields rose across the board as investors adjusted to the possibility of higher-for-longer interest rates. The 10-year Treasury yield climbed to approximately 4.49% while the 2-year yield jumped to 4.21% following stronger-than-expected economic reports. Investors remain concerned that energy price volatility and underlying inflation will prevent the central bank from cutting rates in the near term.

While growth-oriented sectors like technology and communication services faced downward pressure, energy and healthcare shares offered pockets of stability. The energy sector benefited from supply concerns despite recent diplomatic developments, while healthcare gained as investors rotated into more defensive positions. Conversely, utilities and real estate sectors struggled under the pressure of rising interest rate expectations.