US stocks fell on Thursday as investors digested data confirming the Federal Reserve's claim that the economy is strong enough to withstand further tightening. Technology stocks took a beating after chipmaker Micron Technology issued a bleak outlook.

After falling as much as 3% during trading hours, the S&P 500 finished the session down 1.4%. The tech-heavy Nasdaq 100 fell as much as 4%, but recovered to end the day down 2.5%. The dollar rose. The yield on the policy-sensitive two-year treasury note increased to 4.27%. Oil's three-day rally came to an end.

Data released on Thursday painted a picture of a resilient economy, raising concerns that the Fed will need to do more to keep inflation under control. Initial jobless claims rose less than expected in the week ending December 17, highlighting the labor market's strength. The third-quarter GDP was revised to 3.2%, up from a previously reported 2.9% increase, due to higher spending.