US stocks sold off on Thursday, with the Dow heading for its worst day of the year. The Dow fell more than 1.6 per cent, the S & P 500 fell more than 2 per cent and the Nasdaq fell more than 3 per cent. Some of the latest data have sparked fears of a possible recession and the view that it may be too late for the Federal Reserve to start cutting interest rates. The US had its biggest weekly increase since August 2023. The ISM manufacturing index, a barometer of US factory activity, came in at 46.8 per cent, lower than expected, suggesting the economy is contracting. Chris Rupkey, chief economist at FWDBONDS, said: "Today's economic data continue to show a downward trend, if not a recession." The stock market doesn't know whether to laugh or cry, because while the Federal Reserve may cut interest rates three times this year, the winds of a recession are hitting hard. "Some companies that could be severely affected by the recession led the way, with JPMorgan Chase (JPM. N) down nearly 3 percent and Boeing (BA. N) down more than 7 percent. Even big tech stocks like Nvidia are feeling the pain, dropping 8 percent, as investors could sell some of their chips at a time when the market could be more volatile as November's U.S. election approaches.