The Dow Jones industrial index retreated 1.3 percent, the broad S&P500 fell 1.4 percent and the technology-heavy Nasdaq composite index landed at minus 1.9 percent.
The sharp decline is explained by the fact that investors pulled their ears after a report on new jobs in the US labor market was presented. It showed that 9.6 million new jobs had been announced at the end of August – that is, much higher than the 8.9 million that analysts had predicted.
The job figures cause investors to fear that the US central bank, the Fed, will continue to have reason to keep interest rates high.
E-commerce giant Amazon lost 3.8 percent and software giant Microsoft plunged 3 percent. Tesla lost 2.1 percent. Chip manufacturer Intel went against the trend, increasing by 0.7 percent.
Yields on ten-year government bonds rose 4.8 percent to a level not seen since August 2007. It also dragged down stock indexes
In addition, the indices have retreated broadly in recent weeks due to higher oil prices prolonging “sticky inflation” – which in turn leads to high interest rates.