Investors' concern that the Federal Reserve's aggressive anti-inflation strategy would push the economy into recession caused US stocks to decline on Thursday. The shock followed the central bank's announcement on Wednesday afternoon that it would raise interest rates by 0.75%, the biggest increase in 28 years. The Dow today fell below the 30,000 barrier, its lowest point in a year, and the S&P 500 and Nasdaq are already in bear markets.
On Thursday, the market's mood was depressed by additional economic data. In May, housing starts decreased by 14% from the same month last year. With a reading of - 3.3 in June, the Philadelphia Fed Business Index, which tracks changes in business growth, contracted for the first time in two years.
741 points, or 2.4 percent, were lost by the Dow.
The S&P 500 decreased by 3.3%.
The Nasdaq Composite dropped by 4.1%.
Levels may still move somewhat as stocks settle following a trading day.
