Stocks Enter Correction as Rate-Hike Fears Return: Markets Wrap

  • Year’s S&P gains erased after nine-day rout; Dow down 1,000
  • Pound rises on BOE forecasts; euro drops, dollar holds steady
Stocks Drop as Volatility Spikes
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The dread that gripped equity markets earlier in the week re-emerged Thursday as U.S. stocks plunged into a correction on concern that rising interest rates will drag down economic growth.

Selling accelerated in the final hour of trading as major indexes breached round-number milestones they blew past just weeks ago. The S&P 500 tumbled through 2,600 and the Dow failed to hold 24,000. Both are headed toward their average price for the past 200 days, a level that technical analysts say may act as a magnet and a floor.