US President Donald Trump said that last night's stock market sell-off was in fact along-awaited "correction", and that the Federal Reserve, which has been raising US interest rates, had gone "crazy".
"I don't like it", Trump said Tuesday at the White House, referring to the Fed's rate hikes, the most recent of which was September 26.
Trump has repeatedly touted Wall Street records as proof of the success of his economic program, including his confrontational trade strategy.
Higher interest rates tend to moderate economic growth and makes borrowing more expensive for the USA government as well as businesses and consumers.
The Fed last raised interest rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the United States economy would enjoy at least three more years of economic growth.
He has frequently criticised the USA central bank for gradually raising interest rates, and on Wednesday reiterated his position: "I really disagree with what the Fed is doing". Of the stock market, he said, "Actually, it's a correction that we've been waiting for, for a long time".
The markets have been on a historic climb - with the Dow and S&P each notching dozens of new highs since 2016 - buoyed by a strong US economy and solid corporate earnings.
Currency investors took shelter in the safe-haven yen, resulting in steep losses for Japanese exporters, with electronics giant Sony down almost five percent as blue-chip firms flashed red across the trading board.
Adams said investors have concerns about their future profitability, too, making technology stocks more volatile in the last few months.
The biggest driver for the market over the last week has been interest rates, which began spurting higher following several encouraging reports on the economy.
"It's shifting the tectonic plates", said Jack Ablin, chief investment officer at Cresset Wealth Advisors.
Larry Benedict, founder of the Opportunistic Trader, said that even while some of the largest names in tech - including Netflix, Amazon, Google and Facebook - saw some of the steepest dips, they are all up significantly for the year.
And while stocks could get a boost from strong corporate earnings, there are concerns the United States trade conflicts will start to undermine profits.
The turmoil on stock markets came a day after the International Monetary Fund slashed its global growth forecast on worries about trade wars and weakness in emerging markets.
Bourses in Paris and Frankfurt both lost more than two%, while London fell 1.3%.
"To say risk appetite has taken a hit would be an understatement!" The Nasdaq fell 315 points, or 4.1 percent, to 7,422.
In other markets, oil prices fell sharply on worries that Hurricane Michael, which is battering the USA state of Florida, will dent demand for gasoline and other petroleum products.
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