Dow tumbles over 900 points, S&P 500 sheds 2.8% as stocks hit session lows in afternoon trade

U.S. stock indexes extended losses in early afternoon trade Thursday on worries that the Federal Reserve's relentless interest rate hikes will tip the economy into a recession. The Dow Jones Industrial Average fell 927 points, or 2.7%, to 33,042, on track to book its biggest daily decline in over two months. The S&P 500 slumped 2.8%, while the Nasdaq Composite dropped 3.4%, both heading for their worst days since September. The Federal Reserve hiked its interest rate by half a percentage point on Wednesday, with the benchmark rate projected to top out at 5.25%, higher than their September forecast of 4.75%. On Thursday, both the European Central Bank and Bank of England also hiked their lending rates by 50 basis points.

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