NYSE floor

Stocks tumbled broadly on Wall Street, keeping major indexes on track for another deep weekly slump.

The S&P 500 fell 2% Friday, near its lowest point of the year.

The Dow Jones Industrial Average and Nasdaq also fell.

Stocks have been falling all on worries about slowing economic growth worldwide amid a global effort to fight inflation.

Treasury yields, which affect rates on mortgages and other kinds of loans, held at multiyear highs.

U.K. government bond yields snapped higher after that country's new government announced a sweeping plan of tax cuts.

Oil prices fell sharply.

European stocks fell just as sharply or more after preliminary data there suggested business activity had its worst monthly contraction since the start of 2021. Adding to the pressure was a new plan announced in London to cut taxes, which sent U.K. yields soaring because it could ultimately force its central bank to raise rates even more sharply.

The Federal Reserve and other central banks around the world aggressively hiked interest rates this week in hopes of undercutting high inflation, with more big increases promised for the future. But such moves also put the brakes on their economies, threatening recessions as growth slows worldwide. Besides Friday’s discouraging data on European business activity, a separate report suggested U.S. activity is also still shrinking, though not quite as badly as in earlier months.

“Financial markets are now fully absorbing the Fed’s harsh message that there will be no retreat from the inflation fight,” Douglas Porter, chief economist at BMO Capital Markets, wrote in a research report.

The Federal Reserve on Wednesday lifted its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%. It was at virtually zero at the start of the year. The Fed also released a forecast suggesting its benchmark rate could be 4.4% by the year’s end, a full point higher than envisioned in June.

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