US shares fell sharply again on Friday with the blue-chip Dow Jones Industrial Average ending below 10,000 points for the first time since April last year.

The Dow Jones, which reflects the share value of 30 of America's largest companies, has now tumbled more than 15% from its peak reached last month.

The spark for Friday's 230 point fall was the news that the seemingly unstoppable US economy grew at its fastest rate since 1987 in the final quarter of last year.

That data suggested the series of four recent interest rate rises have so far done little to slow the runaway growth of the world's economic juggernaut.

The Dow Jones Industrial Average had dipped briefly below the 10,000 mark on Thursday before closing at at 10,092.

But hopes investors may have harboured of a brighter end to the week were dashed as 2.3% was wiped off the Dow as it closed at 9.862.

Nasdaq powers on

That was its first finish below the 10,000 mark since 6 April 1999.

The Dow has lost more than 15% of its value since hitting the high point of 11,722 on 14 January.

The gloomy picture over the past few weeks has not been mirrored at the technology-stock dominated Nasdaq market, where its benchmark index has continued to hit, or be near to, all time highs.

The belief in prospects of the so called new economy companies which make up the Nasdaq, has enabled it to brush off much of the negative impact of higher interest rates.

Rate rises

That was different to the picture on the Dow, as its blue chip members were rocked by Commerce Department figures showing gross domestic product grew at an annual rate of 6.9% in last year's fourth quarter, more than the previously estimated 5.8%.

It was the most sizzling GDP performance since the same rate of growth was hit in the second quarter of 1996. It has not been surpassed since a 7.2% rate of growth in the closing quarter of 1987.

The Federal Reserve has raised interest rates four times since June last year in a bid to cool the economy.

The aim is to slow the economy's growth to a sustainable level, and so avoid the risk of inflation building up.

But although there has been little evidence of rising prices, there have been few signs of the rapid growth of the US economy slowing.

Wage rises

In February the American economy will have grown for nine years in succession, a peace-time record.

Unemployment in the United States is currently at a 30-year low of 4%.

However, tight labour markets are seen as likely to trigger wage demands, which in turn could set off inflation.

The expectation is that interest rates will now have to rise faster and higher to slow the economy down.