Wall Street's benchmark S&P 500 index plunged 3.6% on Thursday for its biggest one-day loss in two years as optimism that drove the previous day's rally evaporated.
"Clearly, investors had second thoughts about the so-called `dovish hike' from the Fed," Rob Carnell of ING said in a report. The likelihood is "rate hikes coming thick and fast, but little if any prospect of a turn in inflation any time soon." Russia's war on Ukraine, high oil prices and global supply chain disruptions are adding to investor unease.
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