US financial markets tumbled a day after the country’s central bank levied the biggest interest rate rise in 22 years.

The sell-off came as worries intensified over how rising prices – and the Federal Reserve’s steps to rein them in – will affect economic growth.

Technology stocks led the falls, which were some of the steepest since 2020.

The Dow index, which includes mainstays such as Apple and Nike, shed more than 1,000 points to end 3.1% lower.

The wider S&P 500 fell 3.6%, while the tech-heavy Nasdaq plummeted nearly 5%.

The losses wiped out the gains the markets had enjoyed on Wednesday, after the Federal Reserve announced it was raising its benchmark rate by half a percentage point to 0.75% to 1%.

That move, which will make borrowing more expensive, had been expected.