Investors fled stocks on Thursday, putting the Standard and Poor’s 500 index into correction territory, as worries about the U.S. economy and European debt escalated, Reuters reported.

Two of the three major stock market indexes were each down 3 percent, with the other nearing the 3 percent mark.

“People are throwing in the towel because they can’t find relief on any front. There are a lot of worries about the economy,” said Milton Ezrati, market strategist at Lord Abbett Co. in New Jersey, in an interview with Reuters.

As of 2:09 p.m., The Dow Jones industrial average was down 343.42 points, or 2.89 percent. The S&P 500 was down 93.08 points, or 3.18 percent. The Nasdaq composite index was down 93.08 points, or 3.46 percent.

The S&P 500’s losses since its May 2 high have now reached more than 10 percent, putting it in correction territory.

Analysts predicted further losses ahead, given the degree of pessimism among investors.  

The market’s fear gauge – the VIX – surged 18 percent to a reading of 27.6, CNNMoney reported. A level of 30 or above signals a high degree of fear. The VIX is up 57 percent from the start of the year.