It is now understood the plane was an Airbus A300 which suffered engine
failure shortly after taking off from JFK airport.
Early reports said the aircraft was a Boeing 767 - the same type which
crashed into the World Trade Centre - and was heading to Santo Domingo in
the
Domincan Republic.
The jet came down in Queens, in the south of the city.
There are reports the plane hit a number of buildings near Rockaway
beach.
Security chiefs said there was no evidence of terrorist activity but all
airports in New York have now been closed as a precautionary measure.
A huge plume of smoke is rising above the New York skyline as the
wreckage
burns.
The Dow Jones dropped 200 points as news of the crash reached the
markets.