The Dow Jones industrial average dropped by 473 points to end at 34,269 points, a drop of around 1.3% today.
That’s the Dow’s biggest loss since late February — the same as the UK’s FTSE 100.
Concerns about rising prices weighed on Wall Street ahead of tomorrow’s US inflation report, with factory gate prices jumping in China, which had already pushed European stocks into their biggest fall of 2021.
The record jump in US job vacancies also fuelled concerns about possible labor shortages as people and companies try to recover from the pandemic.
Insurance group Travelers Companies (-3%), DIY retailer Home Depot (-3%) and financial services group American Express (-2.67%) led the fallers on the Dow Jones industrial average.
They were followed by oil company Chevron (-2.6%), and investment bank Goldman Sachs (-2.3%).
The broader S&P 500 index finished 0.9% lower, down 36 points at 4,152 points.
But the Nasdaq managed to recover virtually all its losses, and finished just 12 points lower at 13,389 (-0.1%).
Among major tech firms, the picture was mixed today. Tesla dropped 1.9%, Alphabet/Google lost nearly 1%, Apple slipped by 0.75%, Microsoft dipped 0.4%.