Dow sheds over 760 points as recession fears mount

NEW YORK, Dec. 15 (Xinhua) -- Wall Street's major indexes fell sharply on Thursday as fears mounted that the Federal Reserve's policy tightening could tip the economy into a recession.

The Dow Jones Industrial Average shed 764.13 points, or 2.25 percent, to 33,202.22. The S&P 500 dipped 99.57 points, or 2.49 percent, to 3,895.75. The Nasdaq Composite Index tumbled 360.36 points, or 3.23 percent, to 10,810.53.

All the 11 primary S&P 500 sectors ended in red, with communication services and technology down 3.84 percent and 3.78 percent, respectively, leading the slide.

The pullback came as hawkish messages from the Fed stoked fears over a potential U.S. recession.

The Fed on Wednesday raised interest rates by 50 basis points, setting the target range for the federal funds rate to 4.25 percent to 4.5 percent, its highest level in 15 years.

At a press conference following the announcement, Fed Chair Jerome Powell said the central bank still had "some ways to go."

The Fed's updated economic projections showed that policymakers saw benchmark rates rising to a median level of 5.1 percent in 2023, above the 4.6 percent forecast back in September.

Meanwhile, the Fed outlined more pessimistic forecasts for unemployment and economic growth for next year and 2024.

Also weighing on the market was a disappointing retail sales report.

The U.S. Commerce Department reported Thursday that U.S. retail sales dropped 0.6 percent in November, suggesting inflation is taking a toll on consumers. Economists polled by The Wall Street Journal had estimated a 0.3 percent decline.