Wall Street Falls On Pessimistic ECB Forecast

The declines came after the ECB slashed its 2019 economic growth and inflation forecasts and announced fresh stimulus, with new rounds of cheap loans to banks to keep credit flowing.

"We're coming out of, and maybe we still are in a period of continued weakness and pervasive uncertainty," ECB chief Mario Draghi said. The announcement came only a day after the Organisation for Economic Co-operation and Development cut its global growth forecast for the year.

Gregori Volokhine of Meeschaert Financial Services said: "For once, we can see the problems with European stocks jump to the American market. The ECB's bearish tone had a big effect on investor psychology."

Declines were fairly broad-based, with Dow members Caterpillar, Goldman Sachs and Home Depot all losing one percent or more.

Large tech names were also under pressure. Amazon, Facebook and Netflix all dropped two percent or more. (AFP)