Stocks fell on Thursday, with the S&P 500 experiencing its worst day since March. Bonds’ belly of the US Treasury yield curve rose to 15-year highs after the Federal Reserve decision, indicating market risk aversion.

Fed Chair Jay Powell maintained the “higher for longer” approach and maintained the main policy rate, tempered optimism that the US economy will avoid recession this cycle.

The 10-year is near 4.5%, the highest level since 2007, as bond vigilantes run with the statements.

Bond investors are not doing much better, as bond yields must fall significantly for them to rise, creating a rough landing.

As economic uncertainty and headwinds persist, investors have lost faith in cyclical companies.