Concerns that credit market losses would curb bank lending and spur a recession sent the S&P 500 index 1.1% lower in sterling, total return terms, paring the region's annual gains. Fears of a more severe economic slowdown spurred gains from more defensive sectors, including Healthcare and Utilities.Energy and mining stocks (the year's best-performing sectors) led late declines, as the uncertain economic outlook and falling copper prices detracted, but Miners still posted excellent gains over the period. Mortgage-related and real estate stocks were among the worst performers for the quarter, with existing home sales posting their biggest decline for 16 years in September.Retailers suffered as internet sales rose at their slowest pace on record, with rising oil prices and mortgage defaults weighing on holiday spending. The Federal Reserve (Fed) twice cut interest rates by 25 basis points, to 4.25%, sparking a brief rally in the equity markets before investor sentiment soured as analysts questioned the efficacy of the Fed's actions.