The Dow Jones industrial average had its second-biggest drop of the year, plunging almost 500 points, or 1.9 percent, shortly after 2:00 p.m.
United States stock indexes dived around 1 percent on Wednesday as worries over China and the impact of rising Treasury yields on global growth drove falls in luxury goods companies and chipmakers.
All of those factors could threaten the impressive profits Corporate America has been reporting this year.
The S&P 500 was down 55 points, or 1.9 percent, at 2,824-on pace for its worst day since June. Amazon and Alphabet, respectively the second- and fourth-most valuable USA companies, are in what's known as a "correction", a drop of more than 10 percent from a recent peak.
Stock futures pointed to an early decline on Wall Street Thursday as global indexes tumbled, with popular tech companies getting hit the hardest.
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At 12:44 p.m., the Nikkei 225 average traded at 22,496.24, down 1,009.80 points, or 4.30 percent, from Wednesday's closing. Some early relief over a tame report on inflation gave way to renewed selling. On Wednesday it suffered its biggest loss in two years.
Alibaba dropped 4.1 percent after Morgan Stanley and Raymond James cut their near-term profit estimates on the Chinese e-commerce company, citing a softer economic environment in China.
The technology sector, the biggest loser in Wednesday's sell-off, closed down 1.3 percent on Thursday.
After hitting an intraday high of 28.84, the CBOE Volatility Index, popularly known as the "fear gauge", ended the day up 2 points at 24.98, its highest close since February 12.
Amazon has soared 50 percent this year, but its stock has fallen 14 percent from its all-time high in early September. Facebook, the sixth-largest company, has tumbled 29 percent since late July, surpassing the 20-percent threshold for a "bear market". The price of gold jumped 2.9 percent to $1,227.60 an ounce.
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Stocks fell Wednesday as Wall Street sweats over global growth prospects and a bond selloff. A report showing only a modest pickup in consumer prices seemed to calm investors just before the open. Kinahan said investors don't know what to do because stock prices are skidding, but bond prices have also dropped sharply, which limits the appeal of bonds as an investment.
Technology stocks slid more than 2 percent, the most among the 11 major S&P sectors, with the Philadelphia Semiconductor index down 3 percent after Swiss vacuum valve maker VAT Group said demand from chip equipment makers was softening. Apple shares fell 1.2 percent. "Even the economic impact felt locally will give way to faster economic growth in future months as insurance proceeds arrive and clean-up and rebuilding activity gets underway".
The Dow Jones Industrial Average lost 101 points, or 0.4 percent, to 25,497. The Nasdaq Composite was down 1.25%, briefly dipping into correction territory on the heels of its worst session since the Brexit referendum.
Tech is taking its lumps because bond yields have climbed in recent weeks, hovering at a more-than-seven-year high.
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The storm's maximum sustained winds have decreased to 50 miles per hour and it was moving to the northeast at 21 miles per hour . The storm killed at least two people and left hundreds of thousands of homes without power as it moved from Florida to Georgia.