Wall Street tumbles on recession fears; Dow down 391 points

The US markets came off their worst levels, but still finished sharply lower in heavy-volume trading as a grim outlook from the Federal Reserve coupled with ongoing economic jitters fueled fears of a recession. Dow Jones plunged 3.51%, to finish at 10,733, the index skid 528 points in its intraday low.

Dow Jones Industrial Average tumbled 3.51% or 391.01 points at 10733.83. Nasdaq Composite slipped 3.25% or 82.52 points at 2455.67. Standard & Poor's 500 plunged 3.19% or 37.2 points at 1129.56.

On economic data front, weekly jobless claim continues to remain above the key 400,000 mark. For the week they fell by 9,000 to 423,000.

Euro rebounds slightly versus the dollar as US president Barack Obama urges "coordinated action" to prevent the world economy from slipping into a recession. It gains versus the yen before officials gather in Washington for the international monetary fund and the World Bank annual meetings.

In commodities, crude tumbled more than 4%, the lowest since August after Fed's grim economic outlook and disappointing data from China stirred fears of a recession. Brent is currently trading around USD 106 levels.

Gold too plummets set for its largest monthly decline since January followed by a rally in dollar. Gold has fallen by 4.8% so far in September, plagued by rising volatility and the strength of the dollar, currently trading around USD 1740 levels.