The Dow Jones Industrial Average plunged more than 800 points, its worst drop in eight months, led by sharp declines in technology stocks.
Rising bond yields have been drawing investors out of the stock market, and the best-performing stocks over the past year took some of the biggest losses Wednesday.
Amazon lost 6.2 percent and Netflix gave back 8.4 percent.
The Dow and the S&P 500, the benchmark for many index funds, lost more than 3 percent.
The 10-year yield is currently 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August.
The S&P 500 lost 94 points, or 3.3 percent, to 2,785.
The Dow fell 831 points, or 3.1 percent, to 25,598. The Nasdaq fell 315 points, or 4.1 percent, to 7,422.
The White House says there is no reason for concern after U.S. stocks suffered their worst loss in eight months Wednesday.
As a five-day market slump raises concerns that the record bull market may be ending, press secretary Sarah Sanders says, "The fundamentals and future of the U.S. economy remain incredibly strong."
The Dow Jones Industrial Average fell 831 points Wednesday and the Nasdaq composite, which has a high concentration of technology companies, had its biggest loss in more than two years.
Sanders highlighted strong economic indicators, including low unemployment and rising wages, saying President Donald Trump's policies "have created a solid base for continued growth."