The Dow Jones Industrial Average lost 545.91 points, or 2.1 percent, to 25,052.83 after falling as much as 698.
"The direct concern is higher interest rates", said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
The S&P 500 has fallen more than two percent and the Nasdaq 100 Index's losses are approaching 10 percent on Thursday. The Russell 2000 index of smaller-company stocks fell 30.03 points, or 1.9 percent, to 1,545.38. Technology stocks fell especially sharply.
Shares of Amazon declined 6.2 percent Wednesday, as Netflix fell 8.4 percent and Facebook and Apple both fell 4 percent.
The increase in yields from these bonds - which are parcels of USA government debt - can hurt stocks since they will provide competition for investors' cash. With a humming United States economy, the Federal Reserve is expected to continue hiking interest rates. On Wednesday he said he thought policy makers were "making a mistake" and said the Fed had "gone crazy".
US stocks experienced their worst two-day stretch in years this week, with the Dow dropping 1,200 points on Wednesday and Thursday.
Bank shares were boosted as yields rose, with Citigroup and Bank of America seeing gains of 0.4 percent and 0.3 percent, respectively. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks.
The Nikkei average fell more than 1,000 points on the Tokyo Stock Exchange Thursday afternoon following an overnight rout on Wall Street. It was at just 3.05 percent early last week.
The 10-year yield is now 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August.
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Liverpool full-back Andrew Robertson dismissed suggestions the Premier League title race was already down to two teams. Jurgen Klopp has tended to get the better of Pep Guardiola in their recent battles.
Oil prices slumped to two-week lows as global stock markets fell, with investor sentiment made more bearish by an industry report showing USA crude inventories rising more than expected.
All three indexes hit records between August 30 and October 3, despite the escalating Sino-US trade dispute gnawing at confidence on corporate profit growth through most of the year. The Kospi in South Korea fell 3.6 percent to 2,148.97. Technology companies and retailers, including longtime market favorites Apple, Alphabet and Amazon, continue to slide.
It followed a bleak session in Europe, where Germany's Dax and France's Cac 40 had each ended the day more than 2% lower.
Augustine added that with earnings due out from big banks JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) on Friday morning, investors will look for new market sectors to take the lead from tech stocks. Microsoft and Alphabet, Google's parent company, were little changed.
Wholesale gasoline shed 2.7 per cent to $2.02 a gallon.
The rates rose Wednesday after the government released data showing the producer price index rose 0.2 percent in September and is up 2.8 percent on a year-over-year basis. The Nasdaq composite rose 15 points, or 0.2 percent, to 7,436.
The dollar slipped to 112.17 Japanese yen from 112.27 yen late Wednesday.
USA crude dropped 3 percent while Brent crude, the global standard, dropped 3.4 percent.