The Dow Jones Industrial Average lost 91 points, or 0.4 percent, to 25,506.
The Nasdaq composite tumbled 315.97 points, or 4.1 percent, to 7,422.05.
Higher interest rates "eroded the value of stocks, prompting institutional investors to place a massive amount of sell orders", an official at a bank-affiliated securities house said. Apple sank 4.6 percent, Microsoft dropped 5.4 percent, and Google's parent company lost 4.6 percent.
West Texas Intermediate has shed almost $4 a barrel since Tuesday, marking its steepest two-day decline in more than three years. Chip gear producers Applied Materials, Teradyne and ASML Holdings fell between 3.5 percent and 4.6 percent. The S&P 500 shed 1.53% to 2,839.43, on track for its steepest loss since June.
Delwiche, the Baird strategist, thinks the current slump isn't over yet.
On Thursday, President Trump renewed his criticism of the Federal Reserve, blaming the recent downturn in the stock market on the Fed's rate policy. He continued to attack Fed Chair Jerome Powell Thursday, saying he was "disappointed" in "far too stringent" rate hike decisions.More news: Rescuers still searching for missing child and two foreigners — MALLORCA FLOODING DISASTER
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Benchmark U.S. Treasury 10-year notes rose 14/32 in price, pushing their yield down to 3.1724 percent.
Rising bond yields have been drawing investors out of the stock market, and the best-performing stocks over the past year took some of the biggest losses Wednesday.
Adams said those worries are affecting technology and consumer-focused companies as well even though companies such as Alphabet, Amazon and Facebook have long had very high profit margins. Those stocks have made huge gains for years, but they're now out of favor. In 1987, stocks dropped more than 20 percent on a single day-Black Monday, Oct. 19-after a strong rally crashed into the Persian Gulf turmoil and trade deficits.
Oil prices slumped to two-week lows as global stock markets fell, with investor sentiment made more bearish by an industry report showing US crude inventories rising more than expected.
The Nasdaq composite has fallen 9.6 percent since it set a record high in late August and the Russell 2000 has fallen 11 percent. Silver dipped 0.5 per cent to $14.33 an ounce.
The dollar slipped to 112.17 Japanese yen from 112.27 yen late Wednesday.