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April 21 (UPI) -- U.S. markets fell on Thursday amid ongoing concern about the Federal Reserve's plans to tighten its monetary policy. The Dow Jones Industrial Average fell 368.03 points, or 1.05%, while the S&P 500 dropped 1.48% and the Nasdaq Composite closed down 2.07%.
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Treasury yields climbed sharply, with the benchmark 10-year yield climbing above 2.9% -- approaching its highest level since 2018.
Yields rose and markets declined after Federal Reserve Chairman Jerome Powell said it would be appropriate "to be moving a little more quickly" to raise interest rates during a speech at the International Monetary Fund Debate on the Global Economy.
"I also think there is something to be said for front-end loading any accommodation one thinks is appropriate," Powell said. "I would say 50 basis points will be on the table for the May meeting."
San Francisco Fed President Mary Daly in an interview with Yahoo Finance said that the central bank would likely take a 50-basis-point increase in interest rates "in a couple of meetings," as well as begin efforts to reduce its balance sheet.
"Those things are appropriate policy because Americans want relief from inflation and we will do our part which is to bring demand back in balance to the extent we can with supply," she said.
Energy and materials stocks dragged down the market Thursday as Mosaic fell 9.38%, Invesco Solar ETF dropped 6.9% and Chevron declined 4.61%.
Tech stocks also fell broadly, with Nvidia losing 6.05% and Netflix declining 3.53% after plummeting 37% Wednesday after its earnings report revealed that its lost subscribers for the first time in more than a decade.
On the brighter side, Tesla stock rose 3.23% as its first-quarter earnings numbers beat analysts' expectations.
Airlines also posted gains, with United rising 9.31% after forecasting a profit in 2022.
To date, more than 17% of S&P 500 companies reported earnings through Thursday's open, with nearly 81% exceeding analysts' forecasts.
