NEW YORK -- Stocks tumbled more than 1% in early trading as investors fretted over the strength of developing counties' economies. The sell-off also came as the Federal Reserve continues to scale back its massive injections of easy money into the financial system.
Major U.S. indexes followed European stock markets into a steep slide in early trading on Wall Street. The Dow Jones industrial average dropped 207.71 points, or 1.31%, to 15,640.90.
The broader Standard & Poor's 500 index fell 18.99 points, or 1.1%, to 1,775.20. The technology-heavy Nasdaq composite index fell 39.26, or 1%, to 4,083.36.
Hungary's currency was the latest in the emerging markets to fall sharply. Investors have been exiting currencies and bonds issued by emerging-market counties amid fears of an economic slowdown and the end of the Fed's stimulus program.