Stocks fell on Thursday, with the S&P 500 falling to a new low for the year, as market participants became concerned that a recession may be incoming. The Dow Jones Industrial Average fell over 450 points, while the S&P 500 and Nasdaq Composite fell 2% and 2.8%, respectively.
Here's how the market settled on Thursday:
S&P 500 Index (NYSE: SPY): -2.11% or -78.57 points to 3,640.47
Dow Jones Industrial Average (NYSE: DIA): -1.54% or -458.13 points to 29,225.61
Nasdaq Composite Index (NASDAQ: QQQ): -2.84% or -314.13 points to 10,737.51
Thursday's moves followed a broad market rally on Wednesday, as the Bank of England said it would purchase bonds in effort to support the cratering British pound. The Dow rose over 500 points and the S&P 500 climbed nearly 2%, both snapping six-day losing streaks.
The market sell-off was broad-based and led by Apple (NASDAQ: AAPL), which fell further after Bank of America (NYSE: BAC) downgraded the stock on iPhone demand concerns. Apple declined on Wednesday after Bloomberg reported the tech giant is reversing plans to increase production of its iPhone this year after demand for the product did not meet expectations.
"We view the slowdown in services and relatively lackluster iPhone lead times as indicators that consumer spending will slow," BofA analysts wrote on Thursday. Analysts lowered the stock's rating to neutral and cut its price target from $185 to $160 per share.
Elsewhere, Bed Bath & Beyond (NASDAQ: BBBY) shares fell after the company posted a wider quarterly loss in its fiscal second quarter, with its sales dropping by 28%. The home goods retailer reiterated its full-year outlook, anticipating for comparable sales to decline by about 20% as business improves in the latter half of the year.
In economic news, initial jobless claims fell to 193,000 for the week ended September 24, according to the Labor Department's report on Thursday, marking its lowest total since April and down from the previous week's downwardly revised print of 213,000.
The report added to already present recession concerns as investors fear the Federal Reserve will continue its aggressive rate hikes in effort to stabilize prices as the labor market remains strong despite surging inflation.
Separately, a third reading of U.S. gross domestic product (GDP) from the Commerce Department showed economic activity contracted at an annualized rate of 0.6%.
Despite Wednesday's rally, major averages are on track for a losing week and their worst month since June's lows. The Nasdaq is currently down over 9% for September, while the Dow and S&P 500 are on pace to end the month 7.3% and 7.9% lower, respectively.