In a whirlwind on Wall Street, tech stocks took the lead in a broad market retreat. Investors grew increasingly concerned over the Federal Reserve’s hawkish stance, which accompanied its decision to maintain interest rates at current levels.

The S&P 500 (^GSPC) tumbled by 1.6%, following a nearly 1% dip the previous day, while the Dow Jones Industrial Average (^DJI) slumped by 1%. The Nasdaq Composite (^IXIC), heavily influenced by tech companies, experienced the most significant decline, falling by approximately 1.8%.

Delving into the central bank’s projections, investors gleaned that policymakers anticipate interest rates to remain “higher for longer.” The pivotal question revolves around the duration of this extended period, given the Fed’s indication of another rate hike at one of its final two meetings this year. Goldman Sachs, for instance, has pushed back its prediction for a Fed rate cut to the fourth quarter of 2024.

The potential for an extended era of elevated rates has unnerved some investors, as it could exert pressure on both stocks and bonds. On Thursday, the yield on the 10-year Treasury benchmark climbed, briefly reaching its highest level in over 15 years.

Nevertheless, Fed Chair Jerome Powell emphasized that policy decisions would hinge on economic data during his press conference. Official reports released on Thursday revealed that jobless claims had fallen to their lowest point since January, underscoring the resilience of the US labor market.

In contrast to the Fed’s stance, the Bank of England opted to keep interest rates unchanged, marking a pause in tightening after 14 consecutive rate hikes due to an unexpected slowdown in inflation. Meanwhile, surprises emerged from European central banks, with the Swiss National Bank maintaining its current rates and Norway’s central bank hinting at a potential follow-up rate hike in December after September’s adjustment.

In the realm of individual stocks, FedEx shares surged following a significant quarterly profit beat.