US stocks continue to fall as investors digest hawkish Fed outlook while jobs report looms

• US stocks extended losses Thursday as investors remained worried over a hawkish Fed.
• The Nasdaq led the decline as bond yields continued to climb amid expectations for more rate hikes.

US stocks added to losses Thursday, as investors continued to contend with the prospect of the Federal Reserve raising rates higher than previously thought.

The Nasdaq led the decline as bond yields surged. Remarks from Fed Chair Jerome Powell on Wednesday, following the announcement of another 75-basis-point rate hike, squashed hopes for a pivot in the near term.

"Indicating that the Fed expects to extend its horizon for continuing to raise interest rates, Powell warns that the long slog will continue," said David Donabedian, chief investment officer at CIBC Private Wealth. "Powell threw a wet blanket on investors hoping that the Fed would transition to the final phase of the tightening process. "

Investors are also looking ahead to the Labor Department's monthly payroll report coming out early Friday. The consensus is for job gains to slow to 205,000.

Here's where US indexes stood at the 4:30 p.m closing bell on Thursday:

• S&P 500: 3,719.87, down 1.06%

• Dow Jones Industrial Average: 32,001.25, down 0.46% (146.51 points)

• Nasdaq Composite: 10,342.94, down 1.73%

Here's what else is happening today:

• Billionaire Sam Zell said the Fed is finally making the right moves, even though a recession will be the likely result.
• The Fed will only hike as high as 4.5%, according to Jeffrey Gundlach, who sees an 80% chance of a US recession next year.
• The world could face the worst financial crisis since World War II as hyperinflation looms, hedge fund Elliott Management said.

In commodities, bonds, and crypto:

• West Texas Intermediate crude fell 2.13% to $88.08 per barrel. Brent crude, the international benchmark, rose declined 1.47% to $94.74.
• Gold slipped 0.18% to $1,631.74 per ounce.
• The 10-year Treasury yield jumped 7.3 basis points to 4.136%.
• Bitcoin inched up 0.22% to $20,224.09.