Nvidia tumbled by 2.8%. The strength of Nvidia's results and its guidance could have a significant impact on the markets amid recent concerns about an AI bubble. the Commerce Department released a report showing a significant rebound by new orders for U.S. manufactured goods in the month of August. The report said factory orders jumped by 1.4% in August after tumbling by 1.3% in July.

Computer hardware stocks turned in some of the market's worst performances, with the NYSE Arca Computer Hardware Index plunging by 3.7%. Semiconductor and software stocks saw substantial weakness, contributing to the steep drop by the tech-heavy Nasdaq were considerably weak. Home Depot (HD) helped lead the retail sector lower, tumbling by 6.0% after reporting weaker than expected third quarter earnings and cutting its full-year earnings guidance. Oil stocks bucked the downtrend amid a sharp increase by the price of crude oil, driving the NYSE Arca Oil Index up by 1.4%.

Asia-Pacific stocks moved sharply lower. Japan's Nikkei 225 Index plummeted by 3.2%, while Hong Kong's Hang Seng Index dove by 1.7%. The major European markets significant moved to the downside while the French CAC 40 Index plunged by 1.9%, the German DAX Index tumbled by 1.8% and the U.K.'s FTSE 100 Index slumped by 1.3%.

In the bond market, treasuries gave back ground after an early advance but still closed slightly higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down 1 basis point to 4.12% after hitting a low of 4.08%.

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