Five people killed and more than 40 injured after car ploughs into Christmas parade in Wisconsin

Five people are dead and more than 40 injured after a red SUV drove through a crowded Christmas parade in Waukesha, Wisconsin, on Sunday.

It was not known whether the incident was related to terrorism, but an earlier shelter-in-place order in the town of around 72,000 has since been lifted, according to authorities.

A video showed a red SUV hurtling in the direction of the crowd, sending people scattering as the car bore down on them.

Waukesha Police Chief Dan Thompson said a vehicle had been recovered, a person of interest was in custody and there were no further threats after the incident.

The police chief said an officer fired a weapon at the vehicle, no bystanders were injured by gunfire.

Waukesha Police Department told residents via its Facebook page to “please avoid the downtown area for the time being,” and a “family reunification location” was being set up at the Waukesha Command Post.

Footage on social media showed emergency vehicles racing to the scene as witnesses screamed in terror.

Steve Howard, the head of the Waukesha fire department, said 11 adults and 12 children were transported to local hospitals.

According to eyewitnesses those struck by the car included members of a marching band and also four members of a group called the “dancing grannies”.

The New York Times reported that a man wearing a sweatshirt and grey hat was at the wheel of the SUV, which is understood to have been a Ford Escape.

A witness, Tom Hickey, said the car turned right and then accelerated as it approached the parade.

“When he made that right turn, that’s when he turned really dangerous,” Mr. Hickey said.

Those injured were taken to hospital by police and ambulances as well as their own families.

Angelito Tenorio, a West Allis alderman who is running for Wisconsin state treasurer, said he was watching the parade with his family when they saw the SUV come speeding into the area.

"Then we heard a loud bang," Mr Tenorio said. "And after that, we just heard deafening cries and screams from the crowd, from the people at the parade. And people started rushing, running away with tears in their eyes crying."

Mr Tenorio said he saw about 10 people, children and adults, on the ground who appeared to have been hit by the vehicle.

"It just happened so fast," he said. "It was pretty horrifying."Corey Montiho, a Waukesha school district board member, said her daughter's dance team was hit by the car.

"They were pom-poms and shoes and spilled hot chocolate everywhere. I had to go from one crumpled body to the other to find my daughter," she told the Milwaukee Journal Sentinel.

Zach Heisler, who was at the parade, wrote on Twitter: “A car just broke through the police line, plowing through pedestrians and firing rounds out the window. Family and I are safe. Happened 20 feet in front of us.”

Witnesses Kaylee Staral, who identified herself on Twitter as a journalism student and intern at the Milwaukee Journal-Sentinel, wrote: "A car just ran through the middle of a downtown Waukesha parade. Police shouting at least 30 people down and that shots were fired. Multiple people on the ground injured.

“Heavy police and ambulance presence now. Tons of families with children running to their cars to leave the scene."

Speaking to CNN she said “Twenty to 30 minutes into the parade a red SUV ran into the parade.

“It was going really fast,” she added. “There was a lot of screaming. There were a lot of families with small children, they ran into stores to get off the street.”

The incident took place two days after Kyle Rittenhouse was cleared of murdering two men during the unrest in Kenosha following the police shooting of Jacob Blake, a 29-year-old black man, who sustained serious injuries.

It was unclear whether Sunday night’s incident was linked to the Kenosha shooting.

Watch: Jacob Blake's uncle leads march through Kenosha