Shirley Jackson’s “The Lottery” is one of the scariest stories I’ve read. It sets up from the start that something is not right in this place and then hits with a shocking punchline. It was originally published in the New Yorker in 1948–there’s a very interesting discussion via Podcast on the magazine site. It was very controversial at the time of its publication, with complaints and subscription cancellations.
Looking back at it now, I also noticed that it’s told in omniscient point of view. It would not have had nearly the impact if it had been told in one of the other points of view.