Wall Street staged a broad sell-off Thursday morning as pessimism continued to spread as market participants feared the Federal Reserve's hawkish interest rate hikes and a disappoint retail sales report weighed on sentiment. The Dow Jones Industrial Average fell over 760 points, while the S&P 500 and Nasdaq Composite dropped more than 2% and 3%, respectively.

Here's how the market settled on Thursday:

S&P 500 Index (SPY  ): -2.48% or -99.22 points to 3,896.10

Dow Jones Industrial Average (DIA  ): -2.25% or -763.54 points to 33,202.81

Nasdaq Composite Index (QQQ  ): -3.23% or -360.36 points to 10,810.53

Driving the negative sentiment, U.S. retail sales fell 0.6% month-to-month in November, according to the Commerce Department's report Thursday, marking a bigger loss than the 0.3% expected on Wall Street. Market participants interpreted the pull back in spending, despite easing inflation, as a sign that price pressures are beginning to impact consumers.

Beneath the headline, the decline in spending was widespread across categories even as the month kicked off the holiday shopping season. On a year-over-year basis, retail sales rose 6.5%, compared to November's CPI inflation rate of 7.1%.

The disappointing retail data came on the heels of the Federal Reserve's latest monetary policy decision on Wednesday, which policymakers issuing a 50-basis point hike to the Fed's benchmark interest rate. Wall Street turned lower Wednesday afternoon after Fed Chair Jerome Powell said the central bank will continue to raise rates through 2023 to ultimately bring the Fed's terminal rate to an upwardly projected 5.1%.

"It will take substantially more evidence to have confidence that inflation is on a sustained downward," trajectory, Powell said in his post-meeting news conference Wednesday. "We may have to raise rates higher to get to where we want to go and that's really why were writing down those high rates and why we're expecting that they will have to remain high for a time," he added.

The European Central Bank and the Bank of England also issued similar rate hikes on Thursday, bringing the BoE's benchmark rates to their highest level since 2008.

In other economic news out Thursday, the Labor Department said weekly jobless claims fell to 211,00 for the week ended December 9, declining by 20,000 from the previous print. Continuing unemployment claims, which run a week behind, ticked higher to 1.671 million.

For stocks, Netflix (NFLX  ) shares dropped over 9% after Digiday reported that the streaming giant is offering to return money to advertisers after missing key viewership targets for its ad-supported subscription tier. Roblox (RBLX  ) shares tumbled more than 17% after the gaming company showed slowing growth in its November business update published Thursday. The report also showed a decline in earnings from daily active users.

Tesla (TSLA  ) shares ticked higher on news CEO Elon Musk sold about 21,995,000 shares, worth about $3.6 million, during the three-day period ending December 14. However, Tesla shares are down about 20% in December so far and about 55% year-to-date as amid a recent major tech sell-off on Wall Street.