The Nasdaq Composite slumped 474 points, or 3.7%, Thursday morning, more than taking back the previous session’s sharp rise seen after the Federal Reserve delivered a half-point interest rate increase but signaled it was taking a 75 basis point move off the table. Tech-related shares led the drop for stocks as Treasury yields, which had retreated in the wake of the Fed decision, pushed back to the upside, with the rate on the 10-year note jumping more than 12 basis points to 3.037% after failing to extend a move above the 3% threshold earlier in the week. Higher Treasury yields are seen as particularly negative for tech and other growth shares as they reduce the present value of the future earnings and cash flow that drive their valuations. Other major indexes were also down sharply, with the Dow Jones Industrial Average off 663 points, or 1.9%, giving back around two-thirds of its Wednesday rally, while the S&P 500 slumped 2.5%.
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