NEW YORK, New York – U.S. stocks extended losses on Friday after a massive sell-off a day earlier which saw the Dow Jones industrials shed 1,063 points, which the Nasdaq plummeted 4.99 percent.

On Friday losses were more limited but investors remained cautious following the Fed’s half-percentage interest rate increase announced on Wednesday, and the prospect of even more aggressive moves in the future.

“The widely anticipated relief rally seen in equities and bonds post the ‘less hawkish than feared’ Fed on Wednesday was short-lived,” CNBC quoted Barclays strategist Emmanuel Cau as saying in a note to clients.

“Although aggressive 75bp hikes going forward may be off the table, the implied policy tightening cycle ahead is still very hawkish, in our view. Unless surging inflation quickly reverses its course (watch US CPI print next Wednesday), central banks may have no other choice than slowing growth to slow inflation and stay credible.”

At the close on Friday, the Nasdaq Composite was down a further 173.03 points or 1.40 percent at 12,144.66.

The Dow Jones industrials fell 98.60 points or 0.30 percent to 32,899.37.

The Standard and Poor’s 500 eased 25.53 points or 0.57 percent to 4,123.24.

The U.S. dollar remained firm on Friday. The euro edged up slightly to 1.0546 approaching the New York close. The British pound remained on the defensive at 1.2340. The Japanese yen softened to 130.54. The Swiss franc eased slightly to 0.9885.

The Canadian dollar weakened to 1.2894. The Australian dollar was unwanted at 0.7079. The New Zealand dollar dipped to 0.6413.

On overseas equity markets, the Dax in Germany slid 1.64 percent. The Paris-based CAC 40 lost 1.73 percent. The FTSE 100 in London was down 1.54 percent.

The Australian All Ordinaries buckled 175.00 points or 2.29 percent to close Friday at 7,464.20.

In New Zealand, the S&P/NZX 50 dropped 138.22 points or 1.18 percent to 11,609.38.

South Korea’s Kospi Composite declined 30.14 points or 1.14 percent to 27,003.56.

In mainland China, the Shanghai Composite dived 66.20 points or 2.16 percent to 3,001.56.

In Hong Kong the Hang Seng shed 791.44 points or 3.81 percent to 20,001.96.

Going against the trend, Tokyo’s Nikkei 225 advanced 185.03 points or 0.69 percent to close Friday at 27,003.56.