Fears about a harsh economic slowdown and continuing weakness in corporate earnings sent stocks sliding, with the Dow Jones industrials giving up more than 230 points and the Nasdaq registering another new low today.

Disappointed that the Federal Reserve declined to lower interest rates on Tuesday and scared that the Fed has acknowledged the economy may be slowing too much and too fast, investors dumped both high-tech shares and blue chips.

The Dow fell sharply, closing down 265.44, or 2.5 per cent, at 10,318.93.

The Nasdaq composite index finished down 178.94 at 2,332.77, its lowest level since August 1999. Today also was the index's seventh consecutive losing session. The tech-focused Nasdaq is down about 43 per cent so far this year and more than halved its mid-March record close of 5,048.62.