Wall Street plummeted on Thursday as investors reacted to renewed fears of a pandemic resurgence and digested dour economic forecasts from the US Federal Reserve.

All three major US stock indexes lost well over five percent, posting their worst one-day percentage drops since March 16, when markets were sent into freefall by the abrupt economic lockdowns put in place to contain the coronavirus pandemic. The Nasdaq snapped a three-day streak of record closing highs...