U.S. stocks snapped a three-day winning streak to end sharply lower Thursday, as investors assessed the impacts of U.S. Federal Reserve's first rate hike in nearly a decade.
The Dow Jones Industrial Average dropped 253.25 points, or 1.43 percent, to 17,495.84. The S&P 500 tumbled 31.18 points, or 1.50 percent, to 2,041.89.
The Nasdaq Composite Index lost 68.58 points, or 1.35 percent, to 5,002.55. The U.S. central bank on Wednesday announced raising benchmark interest rate by 25 basis points, the first rate hike since 2006, marking the end of an era of extraordinary easing monetary policies.
U.S. Fed Chair Janet Yellen said at a press conference that policies would remain accommodative and that the significance of the first hike should not be overblown. U.S. stocks surged Wednesday following the Fed's announcement, as investors thought the decision to raise rates is a vote of confidence in the U.S. economy.
Analysts believed the stock markets would witness some volatility in recent days as Wall Street tries to digest the rate hike decision.
On the economic front, in the week ending Dec. 12, the advance figure for seasonally adjusted initial jobless claims was 271,000, a decrease of 11,000 from the previous week's unrevised level of 282,000, said the U.S. Labor Department Thursday.
The four-week moving average was 270,500, little changed from the previous week's unrevised average of 270,750. Overseas stock markets saw broadly-based rallies Thursday.
European equities posted solid gains following the U.S. Fed's rate hike decision, with Germany's benchmark DAX index at the Frankfurt Stock Exchange soaring 2.57 percent.
In Asia, Chinese shares ended notably higher Thursday on improved market sentiment, with the benchmark Shanghai Composite Index jumping 1.81 percent to end at 3,580 points.
The CBOE Volatility Index, often referred to as Wall Street's fear gauge, rose 6.05 percent to end at 18.94 Thursday.
In other markets, oil prices continued to fall Thursday as global supplies exceed the demand. The West Texas Intermediate for January delivery moved down 57 cents to settle at 34.95 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery decreased 13 cents to close at 37.06 dollars a barrel on the London ICE Futures Exchange.
The U.S. dollar surged against other major currencies Thursday as the Fed decided Wednesday to raise interest rate for the first time in nine years, while central banks in Japan and Europe were expected to unleash further stimulus.
In late New York trading, the euro fell to 1.0811 dollars from 1.0968 dollars in the previous session, while the dollar bought 122.82 Japanese yen, higher than 121.89 yen of the previous session.
Gold futures on the COMEX division of the New York Mercantile Exchange plunged Thursday, with the most active gold contract for February delivery dropping 27.2 U.S. dollars, or 2.53 percent, to settle at 1,049.60 dollars per ounce.
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