U.S. Banks of New York President John Williams said the central bank could reassess its interest rate policy in the new year if the economy slows.
Here's a review of the financial wreckage:
- The Dow and Nasdaq on Thursday posted their lowest price since October 2017, while the S & P 500 finished at its lowest level since September 2017. The Nasdaq has just entered a bear market before recovering.
- The Dow and S & P 500 have each lost more than 3.5 percent this week; the Dow has shed more than 800 points since Monday.
- The Dow and S & P 500, which are both in corrections, are on track for their worst December performance since the Great Depression in 1931, down more than 9 percent each month.
- The Dow is on track for its worst month since February 2009.
- Both the Dow and the S & P 500 are now in the red for 2018 by at least 6 percent.
On Thursday, the Dow Jones Industrial Average has dropped 464.06 points to close at 22,859.6, bringing its two-day declines – which includes the market's reaction to the Fed's rate hike – to more than 800 points. The S & P 500 shed 1.58 percent to end at 2.467.41 while the Nasdaq Composite fell 1.6 percent and closed at 6.528.41. The Cboe Volatility Index – one of Wall Street's worst gauges of marketplace fear – rose above 30 on Thursday, its highest level since February.
Peter Boockvar, chief investment officer at Bleakley Advisory Group, said: "I think the thing was about Powell on Wednesday. "Will on the other hand Powell still talks about data.