Stocks coughed up another sizable advance, the dollar jumped and gold plunged as investors continued to reprice assets to account for the Federal Reserve’s pivot to restrictive policy.

In a dizzying trading session, the S&P 500 erased a rally of almost 2%, while the tech-heavy Nasdaq 100 sank to its lowest since June. Tesla tumbled 12% after the electric-car maker pushed back introductions of new models amid supply-chain challenges. Intel dragged down fellow chipmakers on a disappointing profit forecast, while Apple dropped for an eighth straight day ahead of its results. The dollar climbed alongside the two-year Treasury yield. U.S. natural gas futures spiked, a sharp move that could be a sign of bearish wagers being squeezed out of the market.

More than $5 trillion has been wiped out from stock values this year as traders struggled to price the outlook for interest rates. Markets had been factoring in four quarter-point hikes in 2022, but that edged toward five after Fed Chair Jerome Powell suggested the economy and labor market could handle a faster pace if warranted. Morgan Stanley’s strategist Andrew Sheets is doubling down on a bet that U.S. stocks are turning from leaders to laggards as they struggle to adjust to an era of tighter policy.

“Market volatility is not going away anytime soon as the ‘buy the dip’ crowd has a new motto, ‘sell the rally,'” wrote Edward Moya, senior market analyst at Oanda. “Today’s stock market rally did not last as corporate America reminded us that supply-chain troubles persist, and profit forecasts are not providing any reasons to be optimistic. Many traders are still processing what happened yesterday with the Fed.”... Read More: Bloomberg