U.S. stocks plunged Thursday morning as December’s sell-off resumed after a rally in the previous session that failed to hold ground.

The S&P 500 (^GSPC) tanked 1.7% shortly after the open, while the Dow Jones Industrial Average (^DJI) shed nearly 450 points, or 1.4%. The technology-heavy Nasdaq Composite (^IXIC) tumbled 2.4% toward 2022 lows.

The moves come after all three major averages booked gains of at least 1.5% on Wednesday, boosted by a rebound in consumers’ attitudes on inflation and the broader economy and upbeat earnings from Nike (NKE) that at least temporarily curbed fears around the corporate outlook.

Poor results from Micron Technology (MU), however, soured the mood. The largest U.S. manufacturer of memory chips warned of a glut in the semiconductor market and forecast a wider-than-expected second-quarter loss as a result. The company also revealed a series of cost-cutting measures to help offset an expected drop in revenue, including a 10% reduction in its workforce. Shares fell 4.2%.

Meanwhile, Under Armour (UA) named Marriott International President Stephanie Linnartz as its next chief executive officer, concluding a seven-month search for a new leader. Linnartz, who was one of 60 candidates under consideration, is expected to assume the post Feb. 27, according to the company. Under Armour’s stock was down 2.6% early into the session.

On the economic data front, filings for unemployment insurance ticked up slightly to 216,000 in the week ended Dec. 17, the Labor Department said Thursday, a modest increase from the prior week’s upwardly revised 214,000.

In commodities markets, oil charged higher for a fourth straight day ahead of wintry weather in the U.S. and forecasts of a storm moving toward North America. West Texas Intermediate (WTI) crude futures – the U.S. benchmark – were up about 1.2% to top $79 per barrel.

“Energy stocks again have a spring in their step, thanks to a rise in crude prices for the fourth straight session amid expectations of higher demand over the holiday period,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown said in an emailed note. “But gains are being capped by concerns lingering in the background about world economic prospects next year.”

NEW YORK, NEW YORK - DECEMBER 21: Traders work on the floor of the New York Stock Exchange during afternoon trading on December 21, 2022 in New York City. Stocks closed strong today for a second day in a row with the Dow Jones closing with over 500 points amid a a better-than-expected report on consumer confidence from the Conference Board. (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NEW YORK – DECEMBER 21: Traders work on the floor of the New York Stock Exchange during afternoon trading. (Photo by Michael M. Santiago/Getty Images)

In cryptoworld, events in the saga of fallen cryptocurrency exchange FTX continued to unfold. FTX co-founder and former CTO Gary Wang and former Alameda Research CEO Caroline Ellison pleaded guilty late Wednesday to charges related to their roles in fraud that contributed to the collapse of the company.

Investors are waiting to see whether a Santa Claus rally — a seasonal rise in the stock market that tends to occur around the end of December – will happen this year. But a downbeat month so far plagued by worries over inflation, rising interest rates, and the likelihood of a recession have thrown a wrench in hopes for year-end gains.

“We think the economy and the markets are merely recalibrating to higher interest rates and to slower growth,” BMO Wealth Management Chief Investment Strategist Yung-Yu Ma said in a note, pointing to record stimulus and economic momentum in 2021 that led to higher inflation.

“All that reversing a created year in 2022 where there was really a pullback.” Ma said. “As a result, we expect 2023 to be a recalibration to what we consider normal times.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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