NASDAQ, Dow Fall in Sharp Reversal

Stocks fell Thursday in a sharp reversal, as a jump in Treasury yields offset the optimism coming from another batch of solid corporate earnings.

The Dow Jones Industrials burrowed into negative territory 368.16 points, or 1.1%, to 34,792.63.

The S&P 500 handed back 65.79 points, or 1.5%, to 4,393.67.

The NASDAQ Composite thundered lower 278.41 points, or 2.1%, to 13,174.65.

Thursday’s move in rates came as Fed Chairman Jerome Powell signaled that bigger rate hikes may be coming next month.

Speaking at the International Monetary Fund Debate on the Global Economy on Thursday afternoon, Powell said it is “appropriate in my view to be moving a little more quickly” to raise interest rates. “I also think there is something to be said for front-end loading any accommodation one thinks is appropriate. ... I would say 50 basis points will be on the table for the May meeting.”

Thursday’s selloff was broad, but some strong individual moves after earnings helped keep the major indexes from even sharper declines.

Energy and materials stocks were a weakness for the market on Thursday, with Mosaic falling 9% and Chevron losing nearly 5%. Clean energy stocks also struggled, with the Invesco Solar ETF sliding more than 6%.

Notable declines in the tech sectors came from Nvidia, falling more than 6%, and Netflix and Alphabet , each falling more than 2%.

Elsewhere on Wall Street, Warner Bros. Discovery retreated 8.3% after news of the company shutting down CNN+.

Investors also pored over the latest quarterly reports, which included stronger-than-expected numbers from Tesla.

Tesla shares jumped more than 6% after its first-quarter numbers beat analyst expectations, thanks in part to strong car deliveries. Several analysts lauded Tesla after the release, with one calling it a “core holding.”

United added roughly 10% after the airline forecast a profit in 2022.

In economic data, initial jobless claims came in slightly higher than expected at 184,000 for the week ending April 16, showing a decline of 2,000. Dow Jones analysts estimated 182,000 first-time claims.

Treasury prices fell, raising yields to 2.89%, from Wednesday’s 2.84%. Treasury prices and yields move in opposite directions.

Oil prices added $1.48 at $103.67 U.S. a barrel.

Gold prices dipped two dollars to $1,953.60 U.S. an ounce.