NEW YORK — The Dow Jones Industrial Average dropped 1.1 percent to 49,526 on Thursday, leading a broad market retreat as inflation concerns weighed on investor sentiment. The S&P 500 fell 1.2 percent to 7,409, while the Nasdaq Composite slid 1.5 percent to 26,225.
Growth stocks bore the brunt of the selling as investors recalibrated expectations for elevated interest rates. Tesla plummeted 4.8 percent to $422.24, extending recent losses. Nvidia dropped 4.4 percent to $225.32. Alphabet lost 1.1 percent to $396.78, and Amazon fell 1.2 percent to $264.14.
The Russell 2000 experienced a sharper fall of 2.2 percent to 2,800, signaling broad risk-off sentiment. High-valuation names face pressure when borrowing costs increase, and recent economic data indicated stubborn price pressures across sectors.
Federal Reserve Chair Jerome Powell has consistently said the central bank requires clear, sustained evidence of inflation moving toward its 2 percent target before considering rate cuts. Thursday's market action suggests investors now price in reduced probability of multiple rate reductions this year.
Some mega-cap technology stocks showed resilience during the selloff. Microsoft rose 3.1 percent to $421.92, while Apple gained 0.7 percent to $300.23. These companies, with robust balance sheets and strong free cash flow generation, often serve as relative havens during market volatility.
