Global stock markets fell Friday after the U.S. Federal Reserve’s decision not to raise short-term interest rates sparked fresh concerns over the state of the global economy.

U.S. stock futures pointed to sharp declines after Thursday’s Fed announcement prompted a late selloff and the dollar extended losses. Stocks in Europe and Japan also posted steep declines.

Futures indicated the Dow Jones Industrial Average falling 1% at the open and the S&P 500 opening 0.9% lower. Changes in futures aren’t always accurately reflected in moves after the opening bell.

The Stoxx Europe 600 was recently trading 1.7% lower, putting it on track for its worst day in two weeks. Germany’s DAX was down 2.8%, France’s CAC-40 declined 2.4% and London’s FTSE 100 lost 1.4%.

Japan’s Nikkei Stock Average fell 2%, although markets elsewhere in Asia gained.

Following a two-day policy meeting, Fed Chairwoman Janet Yellen said Thursday that policy makers had decided to take “a little bit more time to evaluate the likely impacts” of recent market volatility on the U.S. before acting on interest rates.

“The market is disappointed because everyone expected a ‘back to normal’ signal,” said Philippe Waechter, global chief economist at Natixis Asset Management, which oversees about €328.6 billion. “We are not there yet,” he added, saying that the decision not to act shows that the Fed thinks the U.S. economy is “very weak.”

Although low rates have helped fuel years of rising share prices in the U.S. and around the world, markets drew little comfort from the decision. Many investors felt a rate rise would have signaled the central bank’s optimism about economic growth.

“This lack of confidence and clarity about [the Fed’s] own economic position is unsettling for market participants, and is likely to keep risky assets volatile,” said Franck Dixmier, global head of fixed income at Allianz Global Investors, which has about €412 billion under management.

Before the decision, investors and analysts had been split in their forecasts on whether the Fed would raise rates or not. But some had been anxious about a return to normal after years of rock-bottom rates.

“It looks as though everyone was focused on getting this [first increase] out of the way and getting some certainty back, but that’s not what we got,” said Paul Hatfield, global chief investment officer at asset management firm Alcentra, which has about $25 billion under management. He said that there is now a good chance that we don’t see a rise in interest rates until next year.

The Fed’s benchmark rate has been near zero since December 2008.

“[The Fed’s decision] corroborates the idea that growth is not coming through the way people were expecting,” said Johanna Kyrklund, head of multi asset investment at Schroder Investment Management, which has around £310 billion under management globally. “That is really what the market is trying to cope with right now.”

Asian markets reacted more positively with most markets rising. The Shanghai Composite ended the session 0.4% higher.

Many emerging markets have been dealt a sharp blow in recent months as a result of a slowdown in China’s economy coupled with fears of a U.S. rate increase.

The Fed’s decision to stay put had led some emerging market currencies to “breathe a sigh of relief,” strategists at Rabobank wrote in a note to clients.

The dollar extended declines against the euro and Japan’s yen after Thursday’s sharp losses against a broad range of currencies. Lower rates are a drag on the dollar, as they make the currency less attractive to investors.

The euro was recently 0.2% higher against the U.S. dollar at $1.1425. The greenback was 0.8% lower against the yen at around ¥119.25.

In commodities markets, Brent crude was down 0.2% at $49.75 a barrel, while gold rose 1.7% to $1,136.00 a troy ounce.