(Bloomberg) — US stocks dropped on Thursday as investors digested data validating the Federal Reserve’s assertion that the economy is robust enough to withstand more tightening. Technology stocks were battered after a gloomy outlook from chipmaker Micron Technology Inc. weighed on sentiment.
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The S&P 500 closed the session down 1.5%, after falling as much as 3% during trading hours. The tech-heavy Nasdaq 100 declined as much as 4%, but pared its drop to end Thursday down 2.5%. The dollar gained the most in a week. The policy-sensitive, two-year Treasury yield climbed to around 4.27%. Oil snapped a three-day rally.
Data released on Thursday painted a picture of a resilient economy, stoking concern that the Fed has a longer way to go to subdue inflation. Initial jobless claims rose less than forecast in the week ended Dec. 17, underscoring the strength in the labor market. Third-quarter gross domestic product…