Dow plunges 485 points to hit new closing low for the year as interest rate and recession fears roil markets

• US stocks tumbled again on Friday, with the Dow plunging more than 500 points.
• Markets continued to reel from the Fed's rate hike and hawkish forecasts earlier in the week.

US stocks sold off for a fourth straight day on Friday as fears of higher interest rates and slowing economic growth continued to roil markets.

The Dow Jones Industrial Average entered a bear market intraday after falling 20% from its last high, and hits its lowest close of 2022, dipping below the previous low of s 29,888.78 on June 17. S&P Global's Purchasing Managers' Index, a broad gauge of economic health, dropped to 48.2 in September from 48.9 last month, showing that business activity contracted at a faster pace.

That underscored fears that a wave of rate hikes this week from the Federal Reserve and other central banks will snuff out economic growth. For the week, the Dow lost 4.5%, the S&P 500 gave up 5.2%, and the Nasdaq tumbled 5.5%.

Here's where US indexes stood as the market closed at 4 p.m. on Friday:

• S&P 500: 3,693.49, down 1.72%

• Dow Jones Industrial Average: 29,591.47, down 1.61% (485.21 points)

• Nasdaq Composite: 10,867.93, down 1.8%

Here's what else is happening today:

• Goldman Sachs slashed its year-end forecast for the S&P 500, and warned that the Fed's aggressive policy path will lead to further sell-offs in stocks.
• But Fundstrat's Tom Lee remains resolute in his view that the stock market will soar into year-end.
• Russia plans to cut natural gas exports by 40% over the next three years, according to a Bloomberg report.
• Europe is scrambling to put a price cap on Russian oil and it is likely to be included in new sanctions proposals.

In commodities, bonds and crypto:

• Oil prices dropped, with West Texas Intermediate down 5.6% to $78.85 a barrel. Brent crude, the international benchmark, shed 4.7% to $86.24 a barrel.
• Gold fell 1.8% to $1,650.90 per ounce.
• The 10-year yield ticked 2.7 basis points lower to 3.681%.
• Bitcoin slipped 2.7% to $18,809.