U.S. stock indexes extended losses in early afternoon trade Thursday on worries that the Federal Reserve’s relentless interest rate hikes will tip the economy into a recession. The Dow Jones Industrial Average fell 927 points, or 2.7%, to 33,042, on track to book its biggest daily decline in over three months. The S&P 500 slumped 2.8%, while the Nasdaq Composite dropped 3.4%, both heading for their worst days since September. The Federal Reserve hiked its interest rate by half a percentage point on Wednesday, with the benchmark rate projected to top out at 5.25%, higher than their September forecast of 4.75%. On Thursday, both the European Central Bank and Bank of England also hiked their lending rates by 50 basis points.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.