A street sign is seen in front of the New York Stock Exchange on Wall Street in New York, February 10, 2009.
The blue-chip Dow and the benchmark S&P 500 were set for their worst day in a month after Bullard, president of the St. Louis Federal Reserve, said he was among the seven officials who saw rate increases beginning next year to contain inflation.
The CBOE volatility index (.VIX), Wall Street's fear gauge, spiked to 20.60 points, its highest level since May 21 following his comments.
ET, the Dow Jones Industrial Average (.DJI) was down 371.35 points, or 1.10%, at 33,452.10 and the S&P 500 (.SPX) was down 31.41 points, or 0.74%, at 4,190.45.
The S&P index recorded seven new 52-week highs and one new low, while the Nasdaq recorded 18 new highs and 23 new lows.
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