Wall Street stocks finished decisively lower Friday, falling for the fourth straight session as markets bet on the rising risk of a recession due to interest rate hikes.

All three major U.S. indices dropped more than 1.5 percent, adding to the week's losses after Wednesday's big Federal Reserve rate increase.

"What looks like the proverbial 'sell now and ask questions later' downdraft in today's market is just that: raise cash as uncertainty and volatility climbs," said Quincy Krosby of LPL Financial.

"Credit markets globally, along with currency and equity markets are not certain that central banks will be able to restore price stability as easily as their rhetoric suggests."

The Dow Jones Industrial Average tumbled 1.6 percent to 29,590.41, its lowest closing value since November 2020.

The broad-based S&P 500 fell 1.7 percent to 3,693.23, while the tech-rich Nasdaq Composite Index sank 1.8 percent to 10,867.93.

Oil prices plunged about 5 percent to an eight-month low on Friday as the U.S. dollar hit its strongest level in more than two decades.

The drop came after the U.S. Federal Reserve raised interest rates by a hefty 75 basis points on Wednesday. Central banks around the world followed suit with their own hikes, raising the risk of economic slowdowns.

(Source: AFP, Reuters with edits)