Stagflation concerns spook markets
NEW YORK (Reuters) - Stocks tumbled on Wednesday, posting their biggest losses in two weeks, amid fears the U.S. economy faces 1980s-style stagflation after the Federal Reserve slashed its growth forecasts while raising estimates for inflation.
According to preliminary figures, the Dow Jones industrial average .DJI ended down 226.43 points, or 1.77 percent, at 12,602.25. The Standard & Poor's 500 Index .SPX fell 22.64 points, or 1.60 percent, at 1,390.76. The Nasdaq Composite Index .IXIC shed 43.99 points, or 1.77 percent, at 2,448.27.
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