Dow Jones plunges 1,000 points as inflation fears spook investors

Stock Market plunges more than 1000 points

Wall Street was on Thursday heading for its toughest week in more than two years after fears of higher interest rates led to a fresh plunge in New York stocks.

Another day of wild swings in the financial markets saw more than 1,000 points wiped off the Dow Jones industrial average – a loss for the day of over 4%. It was the third drop of more than 500 points for the Dow in the last five days and the Dow is now down 10% from its peak on 26 January, a fall known as a “correction”.

The more broadly based measure of US share prices – the S&P 500 – and the tech-heavy Nasdaq index were also sharply lower as traders reacted nervously to concerns about rising inflation in the world’s biggest economy.