Lennar Corporation shares fell 9% in Thursday’s premarket session after the homebuilder blamed rising mortgage costs for a slowdown in its sales that saw it fall short of analysts expectations.

The Dow Jones Industrial Average shed 2.6%, or 1,123 points, closing at 42,327. The S&P 500 lost nearly 3%, closing at 5,872. The Nasdaq Composite lost 3.6%, closing at 19,393. The S&P 500 and Nasdaq have traded at or near record highs in recent days, partly in anticipation of a rate cut by the Fed.

The Cboe Volatility Index, which trades under the ticker symbol VIX, was down 4% at slightly more than 15, according to FactSet data, at last check. The VIX was trading slightly below its 200-day moving average, based on FactSet data around midday Wednesday.

U.S. stock indexes fell after the Federal Reserve signaled it may deliver fewer cuts to interest rates next year than earlier thought.

The stock market plunged on Wednesday after the Federal Reserve scaled back its expectations for interest rate cuts next year. The Dow Jones Industrial Average fell about 1,100 points, or 2.5%, the largest drop for the index since August.

Stocks were decimated Wednesday with the three major indexes ending broadly lower after the U.S. Federal Reserve indicated it won't cut rates as aggressively next year as markets had expected. The Fed cut rates today by 25 basis points at its regular meeting,

The Dow Jones Industrial Average and other indices declined sharply after the Federal Open Market Committee announced a quarter percentage point reduction in interest rates on Wednesday afternoon and just two more interest rate cuts in 2025.