The US stock market posted its worst performance of the year, with the main index plummeting in the New York session.
The Dow Jones Industrial average fell 697.10 points or 2.06% to close at 33,129.59. This was the index's worst decline since December 15 when it fell 2.3%.
While the S&P 500 lost 2% to close at 3,997.34, while the Nasdaq fell 2.4% to 12,060.30 in the previous session.
This weakness was largely driven by concerns over the continued increase in interest rates by the Federal Reserve (Fed) ahead of the release of the minutes of the FOMC meeting.
Also adding to the stock trading gloom were doomsday forecasts from retailers Home Depot and Walmart.
Home Depot on Tuesday warned of slower demand for home improvement items this year as inflation hurts customers' ability to spend.
In addition, Walmart issued a cautious outlook in its economic forecast for this year following slow spending by consumers will pressure profit margins.
In conclusion, both companies are quite clear in their assessment of the economy. They expect high inflation and rising interest rates will cause consumers to slow down their spending.
