Dow dives more than 500 points in another wild session

Are investors overreacting to the Fed?

FBN’s Charlie Gasparino and Deirdre Bolton on the market selloff and how the Federal Reserve’s push to unwind its balance sheet is impacting the stock market.

U.S. stocks were whipsawed for a second straight session Thursday, a day after the Dow Jones Industrial Average registered its third-largest point drop in its history.

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The blue-chip index tumbled about 546 points, or 2.13 percent, as investors continued to trade on concerns over rising interest rates. The Dow lost about 832 points in Wednesday trading.

The broader S&P 500 dipped 57 points, about 2 percent, while the Nasdaq was down 93 points, or 1.25 percent.

Ticker Security Last Change %Chg I:DJI DOW JONES AVERAGES 25052.83 -545.91 -2.13% SP500 S&P 500 2728.37 -57.31 -2.06% I:COMP NASDAQ COMPOSITE INDEX 7329.0605 -92.99 -1.25%

The market suffered another volatile session in which the Dow tumbled nearly 700 points at the lows of the session before it clawed back some of those losses. The CBOE Volatility Index, known as Wall Street’s “fear gauge,” jumped more than 12 percent.

Amid the selling, President Trump continued to hammer the Federal Reserve. His first remarks came Wednesday when he said the central bank “has gone crazy” with their rate hikes.

“I think the Fed is making a mistake. They’re so tight. I think the Fed has gone crazy,” Trump told reporters on his way to a rally in Pennsylvania. He kept the insults coming on Thursday, appearing on “Fox and Friends” in a wide-ranging interview, which included his thoughts on fiscal policy makers.

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The rout followed fast-rising bond yields and signs of inflation, which led investors to worry that profit margins could narrow.

Of note, on Thursday the yield on the

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