By Yasin Ebrahim

Investing.com – The S&P 500 slipped Thursday, as a rout in big tech more than offset a rise in cyclicals a day after the Federal Reserve laid out a plan to speed up bond purchase tapering and begin hiking rates next year.

It fell 0.9% while it gained 0.1% or 29.7 point, and the Nasdaq dropped 2.5%. 

Apple (NASDAQ) dropped more than 33%, leading to a rout among big tech companies like Google-parent Alphabet Google (NASDAQ), Microsoft (NASDAQ), Facebook (NASDAQ), and others.

Adobe Systems (NASDAQ:) was also a big loser on the day, shedding more than 10% after software maker’s fiscal 2022 fell short of Wall Street estimates.

Tech stocks are falling after the Federal Reserve announced that it will double its monthly bond tapering pace to $30 billion per months. It also forecasts three more hikes next year.

“That decision [of when to hike rates] will be taken ‘in coming meetings’, which puts June in play, one quarter earlier than our call for 3Q22 liftoff,” Morgan Stanley said in a note.

The financial sector saw gains, as investors placed bets that U.S. Treasury yields will see a rise following Wednesday’s slightly more cautious path for rate increases.

Wells Fargo (NYSE :), Bank of New York Mellon (NYSE :). Charles Schwab (NYSE) were the largest gainers, as banks will see a rise in yields and their net interest margin will be boosted.

The market also includes other value segments, such as materials and energy, that tend to follow the economy’s lead.

Energy rose almost 1% on the rise in oil prices. This was as investors assessed the future demand for energy after a bullish update by the Energy Information Agency.

“[The] US Department of Energy reported a considerable decline in and oil product stocks, with crude oil seeing its most pronounced inventory reduction since September,” Commerzbank said.

In health care, Johnson & Johnson (NYSE:) ended the day more than 1% higher despite an advisory panel for the Centers for Disease Control and Prevention voted unanimously to recommend vaccines from Pfizer (NYSE: Moderna (NASDAQ:) over the Johnson & Johnson vaccine. 

In other news, Delta Air Lines (NYSE:) forecast fourth quarter profit of $200 million underpinned by strong holiday demand and rising fares in the fourth quarter.