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U.S. and New York officials said they had no reason to believe the crash was related to terrorism, and police said they had no immediate reports of casualties.
The aircraft crashed at East 72nd St. and York Avenue, near the East River.
"It's really bad. Flames are shooting from the building. I was on my terrace and I saw it," said witness Tressa Octave, who lives two blocks away.
Live television coverage showed smoke and flames pouring from the upper floors of a high-rise building, reviving images of the September 11 attacks.
It was unclear whether the aircraft was a plane or a helicopter.
"It has been confirmed it's a helicopter," a fire department spokeswoman said.
A spokesman for the Federal Aviation Administration said it was a fixed-wing aircraft.
On Wall Street, U.S. stocks extended losses on the news but quickly recovered once it became clear the crash was not an attack similar to that of September 11, 2001.
"We have no reason to believe at this point that it is terrorist related, and our level remains the same," said New York City Police Chief Michael Collins. Reuters