That was its biggest loss since March 22.
Investors are also anxious about the ongoing trade war with China and its impact on corporate bottom lines as well as the rising threat of higher interest rates.
"The tax cuts juiced earnings this year and that's not sustainable", he said.
A bear market by many definitions requires a drop of at least 20% in the S&P 500 from a bull-market peak; likewise, a bear market starts counting at a 20% rise out of a deep trough.
Tech stocks in the S&P 500 fell 2.7 percent Wednesday for the steepest loss among the 11 sectors that make up the index.
Wall Street stocks has plunged with major indices losing more than three percent in a sell-off prompted by the sudden jump in United States interest rates. Technology companies were among the losers, with the Nasdaq Composite dropping more than 2% to 7,575.34.
USA crude fell 1.98 per cent to $71.72 per barrel and Brent was last at $81.30, down 2.15 per cent on the day.
The Dow Jones Industrial Average fell 198.28 points, or 0.77 per cent, to 25,400.46. Stocks had come close to big drops in the last few days, but each time they recovered some of their losses.
Amazon shares declined 6.2% on Wednesday. Industrial and internet companies also fell hard. Berkshire Hathaway dipped 4.7 percent to $213.10 and reinsurer Everest Re slid 5.1 percent to $217.73.
Luxury retailers tumbled. Tiffany plunged 9.5 percent to $111.28 and Ralph Lauren fell 7.3 percent to $118.42. There have recently been several indications that the US housing market has cooled, likely in part due to higher rates on mortgages. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks.
Amazon has soared 50 percent this year, but its stock has fallen 14 percent from its all-time high in early September.
Rising costs, as inflation and borrowing rates pick up, could also be a worry for stock markets. Only 17 stocks in the S&P 500 wound up with a gain.
Earlier on Wednesday, Sears Holdings plunged on reports that the struggling retailer is preparing to file for bankruptcy. In the previous session, the stock jumped 15 per cent on a Globe and Mail report that Altria Group was in talks for acquiring a stake. It's expected to do so at least once again before the end of the year. Over the years, Sears has closed hundreds of stores and sold several famous brands.
"The #MAGA theme is unraveling a bit over the past few sessions as two-sided risks have been injected into the U.S. equity market", Mark McCormick, head of North American FX strategy at TD Securities, wrote in an email.
Oil prices fell to two-week lows after OPEC said its production rose in September, easing concerns about a drop-off in Iranian barrels as United States sanctions loom.
Wholesale gasoline shed 2.7 per cent to $2.02 a gallon.
In other metals trading, silver rose 2 percent and copper added 0.8 percent. Copper fell 0.9 per cent to $2.78 a pound. The FAANGs, spread over three sectors, were down between 1.4 percent and 5.4 percent.
The CAC 40 in France dropped 2.1 percent, Germany's DAX lost 2.2 percent and the FTSE 100 in London fell 1.3 percent. Tech stocks saw slight recoveries as well after being hit hard on Wednesday.
USA stocks tumbled for a second straight session on Thursday (Oct 11) as volatility reigned on Wall Street amid worries about higher interest rates and trade wars. The Japanese yen strengthened 0.53 percent versus the greenback at 112.36.
The dollar index fell 0.31 per cent, with the euro up 0.4 per cent to $1.1564.