The Dow Jones fell a huge 2.1 per cent or 367 points, as crude oil plunged to a 7 year low with US Crude Oil settling at 34.73.

The S&P 500 fell 1.5 per cent, as crude oil continued to fall. The Flash Purchase Markit U.S. Services PMI for December was lower at 53.7, down from the final November read of 56.1 and the lowest print in 12 months.

To make matters worse, this came a day after the US Fed hiked interest rates for the first time since June 2006. The worries for the market were that there was a rate hike and now economic data is coming weak.

Global markets may also see some selling next week, if crude continues to be under pressure.

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