The S&P 500, which aggregates share price information from the top 500 companies in America, sustained a 2 percent fall. The S&P's decline was its largest daily drop since February, Reuters reported.
Stocks could continue sliding down as much as 10 percent before advancing again, Mona Mahajan, investment strategist at Allianz Global Investors, told Reuters.
Notable moves included:
- The Dow Jones Industrial Average falling 831 points to 25,598.
- The Nasdaq Composite shedding 315 points down to 7,422.
- Tesla tumbling 2 percent to $256 per share.
- Snapchat falling 5.7 percent to $6.59.
- Google Class A stock closing at $1,092 after falling 4 percent.
- Amazon shares suffering a $115 sell-off, falling from $1,870 to $1,755.
- Apple's stock dropping 4 percent down to $216.
"This is a bull market correction. It's probably healthy. This will pass and the US economy remains strong," a White House official told CNBC's Eamon Javers.