U.S. stocks closed lower Thursday for the second day in a row after a sizzling start to the week.

The Dow Jones Industrial Average fell 347.40 points, or 1.15%, to 29,926.47. The S&P 500 dropped 38.88 points, or 1.03%, to 3,744.40, and the Nasdaq Composite was down 75.33 points, or 0.68%, to 11,073.31.

Stocks rallied sharply Monday and Tuesday. The S&P 500 rose a combined 5.7%, its best gain since April 2020 at the close of trading Tuesday.

The market then declined each of the last two days, reflecting the economic uncertainty of recent weeks. The Federal Reserve hiked interest rates 0.75% last month, the third consecutive increase at that rate. Fed officials have indicated more rate increases are likely, raising concerns that the central bank could help push the economy into recession if it acts too aggressively to tamp down inflation.

Some of the stocks that declined included Apple (AAPL), which closed at $145.43, down $0.97, or 0.66%. Twitter's (TWTR) price of shares fell $1.88, or 1.88%, to close at $49.42.

"This week has been a really good example of where market psychology is," Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, told the Wall Street Journal. "There are risks to the economy and corporate profits. The question is: Are enough of those challenges priced in?"