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Markets tanked on Thursday as recession fears surged once again, with stocks reversing gains from the previous session when the Federal Reserve announced it would hike rates by 75 basis points, the biggest increase since 1994, in a bid to combat surging inflation.

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Stocks fell after rebounding a day earlier: The Dow Jones Industrial Average lost 2.4%, over 700 points, while the S&P 500 dropped 3.2% and the tech-heavy Nasdaq Composite 4.1%.

Investor sentiment took a hit from rising recession fears with investors concerned that the Fed won’t be able to achieve a soft landing as it aggressively hikes interest rates to bring down inflation.

Stocks mounted a small relief rally on Wednesday after the central bank raised interest rates by 75 basis points—the biggest increase in 28 years, with Fed chair Jerome Powell hinting that a similarly large increase is under consideration for the next meeting in July.

As the Fed scrambles to fight inflation, which remains at 41-year highs, it greatly “raises the risk of a recession because you’re bringing forward rate hikes even faster,” Morgan Stanley chief US equity strategist Michael Wilson told CNBC.

Consumer and tech stocks were among the hardest hit on Thursday: Tesla, Netflix and Amazon all saw shares drop by 3% or more, while travel stocks like Delta and United Airlines also fell.

Rates on government bond yields, meanwhile, continued to surge higher as stocks tanked: The ten-year Treasury note spiked above 3.4%, up from around 2.8% last month.