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U.S. stocks dropped Thursday on persistent concern over faltering global economic growth, led by declines in energy and materials shares, a day after shares had rallied on the Federal Reserve's decision to raise interest rates.

Oil prices LCOc1 CLc1 extended recent declines on persistent oversupply worries and as the dollar .DXY hit a two-week high. [O/R] [FRX/] Dow components Exxon (XOM.N) and Chevron (CVX.N) were down, by 1.5 and 3.1 percent, respectively.

Newmont Mining (NEM.N), which fell 7.7 percent to $17.61, led declines on the materials index .SPLRCM, which fell 1.9 percent. The S&P energy index .SPNY fell 2.5 percent.

The day's fall followed three sessions of gains. On Wednesday, the market rallied after the Fed raised its benchmark rate by 25 basis points to between 0.25 and 0.50 percent, signaling confidence in the world’s largest economy.

Investors' focus returned on Thursday, however, to concerns about weak global economic conditions as the slide in commodity markets continued unabated.

China's slowdown has been transmitted to the rest of the world through a fall in oil and commodities prices, said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, N.Y., which he said "is raising serious questions about global demand and the global economy."

http://www.reuters.com/article/us-usa-stocks-idUSKBN0U01NQ20151217