Stocks are tanking with the Dow down almost 1,000 points

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About 95% of companies in the S&P 500 down today

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The rally in stocks that followed the Federal Reserve decision proved short lived as concern over persistently high inflation and an economic recession resurfaced.

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About 95 per cent of the companies in the S&P 500 retreated on Thursday, with the benchmark halting a three-day advance. The technology-heavy Nasdaq 100 underperformed major equity gauges, tumbling more than 4 per cent. The dollar also made an about-face, climbing alongside Treasury 10-year yields — which topped 3 per cent.

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At 11:15 a.m., the Dow Jones industrial Average was down 969 points, the S&P 500, down 144.20 and the Nasdaq, down 586.48. Canada’s TSX was down 474.31 points.

By pushing back on a jumbo-hike of 75 basis points in June, Fed Chair Jerome Powell beat back the market’s most-aggressive predictions for the path of interest rates on Wednesday.

However, he may also have inadvertently set the stage for more turbulence going forward. It’s still a very rocky road ahead, with pivotal economic data and global developments due within days that could seed doubts about the central bank’s approach.

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“Investors have a ton to chew on, so while we may see some short-term volatility, keep in mind it’s natural to see ebbs and flows in the market as we enter a new era of monetary policy,” said Mike Loewengart, managing director of investment strategy at E*Trade from Morgan Stanley.

U.S. productivity dropped in the first quarter by the most since 1947 as the economy shrank, while labour costs surged and illustrated an extremely tight job market. Separate figures showed applications for state unemployment benefits climbed to 200,000 last week from 181,000. The data precede the government’s monthly jobs report on Friday, which is currently forecast to show payrolls increased by 380,000 in April.

Shares of e-commerce companies from Etsy Inc. to Shopify Inc. tumbled after weaker-than-expected quarterly earnings and forecasts deepened concern that the pace of online shopping has slowed.