London (CNN Business) 1. Fed sparks market sell-off: The Dow slumped to the lowest level of the year on Wednesday after the Federal Reserve raised interest rates and indicated it expects more hikes next year.

The index declined 352 points, or 1.5%. The S&P 500 fell 1.5%, while the Nasdaq dropped 2.2%.

Investors had been hoping the Fed would signal a more significant slowing of rate hikes in 2019 due to signs of economic weakness. Most Fed governors said they expect to hike rates twice next year, after hiking four times this year. Fed Chairman Jerome Powell said the economy at the end of the year was "more subdued than most expected," and recent "developments signal softening" in the economic outlook.

Wall Street was also unnerved by Powell's comments about continuing to shrink the central bank's balance sheet.

The pain extended to global markets: European stocks opened sharply lower on Thursday, with major indexes dropping around 1.5%. Stocks in Asia finished the trading session down.