US markets extend losses, Dow down 4%

Joseph Dreyer of Knight Capital Americas,
LP watches prices on the floor of the NYSE
© AFP/File Stan Honda

NEW YORK (AFP) – US stocks extended a brutal sell-off Thursday, plunging more than four percent in the final hours of trade, fueled by the Federal Reserve’s stark warning about the health of the US economy.

The Dow Jones Industrial Average was down 478.47 points (4.30 percent) to 10,646.37 at 1800 GMT.

The broader S&P 500 was down 48.03 points (4.12 percent) to 1,118.73, while the tech-heavy Nasdaq Composite slumped 108.25 points (4.26 percent) to 2,429.94.

The drops were part of a global sell-off.

Earlier, stocks in Europe and Asia sank after the Fed warned of “significant downside risks to the economic outlook” in the United States amid high unemployment, slow growth and a depressed housing market.

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