US stocks are experiencing a decline, giving back some of the previous day's gains. The S&P 500 dropped by 0.7% in early trading Thursday.

The Dow Jones Industrial Average decreased by 227 points, or 0.5%, and the Nasdaq composite fell by 0.7%. Stocks were boosted on Wednesday after Federal Reserve Chair Jerome Powell stated that the economy remains strong enough for interest rates to remain unchanged.

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Powell also highlighted the challenges in forecasting future outcomes due to extremely high uncertainty. European markets also saw losses following a mixed performance in Asia.

On Thursday, Wall Street markets gave back some of their gains from the previous day when the Federal Reserve reassured that the U.S. economy is robust and decided to keep its key interest rate unchanged.

Before the bell, futures for the S&P 500 dropped by 0.4%, while Dow Jones Industrial Average futures fell by 0.3%. Nasdaq futures decreased by 0.5%.

Discount retailer Five Below surged more than 11% in premarket trading after reporting better-than-expected fourth-quarter sales and profits. The Philadelphia-based company also provided a positive sales forecast and announced plans to open 150 stores this year.

Later Thursday, companies such as FedEx and Nike are scheduled to report earnings after market close. The Labor Department will also release its latest data on layoffs, while the National Association of Realtors will report existing home sales for February.

In addition to the Fed’s announcement on Wednesday, stock prices were supported by falling yields in the bond market. Lower Treasury yields can make stocks more attractive as investors seek higher returns.

This rally follows weeks of significant volatility in the U.S. stock market, with investors concerned about the economic impact of President Donald Trump's policies, particularly his decisions on tariffs. His numerous policy announcements have created uncertainty, prompting concerns that U.S. businesses and consumers may reduce their spending.

Fed Chair Jerome Powell acknowledged the growing pessimism among U.S. consumers and businesses, as indicated by recent surveys. However, he also pointed to positive economic data, such as low unemployment, which suggests that the economy remains strong.

The Fed has kept interest rates steady this year after making significant cuts at the end of last year. While lower rates can help stimulate the economy, they also pose the risk of rising inflation.

Fed officials have suggested that they still expect two additional rate cuts by the end of this year.

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Powell also reassured that concerns about “stagflation,” where the economy stagnates while inflation remains high, are unfounded.

In Europe, markets fell following a mixed day in Asia, where Chinese markets dropped due to heavy selling of tech stocks.

Germany’s DAX index fell 1.5%, while the CAC 40 in Paris dropped 1%. The FTSE 100 in London was down by just 0.1% at midday.

Markets in Japan were closed for a holiday.

Hong Kong’s Hang Seng index fell by 2.2% to 24,219.95, and the Shanghai Composite dropped by 0.5% to 3,408.95. Shares of search engine company Baidu fell by 5.4%, and e-commerce giant Alibaba saw a 4% decline, while JD.com dropped 4.9%.

In South Korea, the Kospi index gained 0.3% to 2,637.10, while Australia’s S&P/ASX 200 rose by 1.2% to 7,918.90.

Taiwan’s Taiex jumped by 1.9%, while Thailand’s SET index dropped by 0.7%.