Investors weighed growth hopes against rising prices and tighter monetary policy as US stocks sank in a turbulent day of trading. Despite a sustained stream of haven bids, Treasurys maintained its gains.

In the final hour of trading, the S&P 500 swung back into the red, a day after its largest single-day plunge since June 2020, wiping $1.5 trillion off its market worth. The Nasdaq 100 index fell 0.4 percent on Thursday. Cisco Systems Inc. dropped more than 10% after warning that supply issues in China will wipe out sales growth in the current quarter.

Treasury yields fell across the board, reflecting increased concern about the global economy and a selloff in stock markets. Weaker-than-expected US jobless claims, as well as a dramatic drop in a regional Philadelphia Fed survey, sparked a buying frenzy. The dollar fell versus all of its group-of-10 rivals, while gold rose.

Stocks have been selling off this week, and the S&P 500 is on the verge of recording its seventh weekly loss, the longest sequence since the dotcom bubble burst more than two decades ago. Beliefs that strong earnings could help investors weather this year's volatility were shattered as major US retailers warned of the escalating impact of high inflation on margins and consumer spending. Meanwhile, federal reserve officials underlined this week that tighter monetary policy is on the way, raising concerns about stagflation.

On the business front, Twitter leaders assured staff on Thursday that the $44 billion sale of the firm to billionaire Elon Musk is proceeding as expected. According to those familiar with the situation, Apple executives showed off their future mixed-reality headgear to the company's board of directors last week, signalling that development of the device has advanced. In an already difficult week for retailers, kohl's lowered its profit and sales forecasts, citing inflationary pressures as a factor.

The Swiss franc gained ground against the dollar after Swiss National Bank President Thomas Jordan suggested policymakers are prepared to intervene in the fight against inflation.