(Xinhua)
Updated: 2007-08-29 05:50

NEW YORK -- Wall Street plunged with the Dow Jones average dropping more than 280 points Tuesday on refreshed concern of economic outlook.

Wall Street has been expected the Federal Reserve to send a stronger signal that it would cut interest rates to help calm turbulent market conditions.

However, in the minutes from the Federal Open Market Committee' s August 7 meeting, while the central bank noted the turmoil in the markets it didn't discuss a cut in the benchmark federal funds rate.

The news came after Merrill Lynch downgraded three major U.S. banks due to turbulence in the debt markets.

The Dow Jones average fell 280.28, or 2.10 percent, to 13,041. 85, its biggest drop since August 9. The Standard & Poor's 500 index was down 34.43, or 2.35 percent, at 1,432.36, and the Nasdaq composite index shed 60.61, or 2.37 percent, to 2,500.64.