The 800-point drop of the Dow Jones Industrial Average on October 10 may be a blip, and so could the almost 5% decline over five days in the S&P 500.
Treasury yields retreated from multi-year highs following the inflation data and as investors flocked to the relative safety of United States government bonds. Boeing lost 4 per cent to $370.04 and Alphabet, Google's parent company, gave up 3.2 per cent to $1,109.08.
At its worst, the Dow Jones index dropped by as much as 699 points, before closing 546 points (2.1 per cent) lower at 25,053.
The 10-year yield is now 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August. The S&P 500 closed at 2,785.68 for a loss of -94.66 points or -3.29%.
Major equity indexes in Europe fell more than 1.0 percent, also pulled down by technology shares, and gold prices inched up as some investors sought refuge in the metal. The Nasdaq composite rose less than a point to 7,422. Companies that have been the biggest winners on the market the last few years, including technology companies and retailers, suffered steep declines.
"People fear building prices into the system, both from China trade problems, other tariffs the USA has put into place, wage pressure, and today there is a little bit of concern about what the Hurricane in Florida could do to energy prices".
West Texas Intermediate has shed almost $4 a barrel since Tuesday, marking its steepest two-day decline in more than three years.
The increase in yields from these bonds - which are parcels of USA government debt - can hurt stocks since they will provide competition for investors' cash.
Hey, Here's the Google Pixel Slate
It is also expected that Pixel 3 and Pixel 3 XL devices will be launched in the domestic market by the second week of this month. As it turns out, the rumour mongers were correct and the company did in fact reveal their new tablet - the Google Pixel Slate .
The decline came amid a widespread selloff on Wall Street, which spilled over into global markets overnight as investors reacted to the "sheer magnitude of the move", OANDA analyst Stephen Innes wrote in a note to investors.
Netflix shares fell by 6pc and have now fallen by 12pc in the last five days.
"If investors are going to take profits then it will be from some of the bigger, high-growth names", Nauman said.
Rising costs, as inflation and borrowing rates pick up, could also be a worry for stock markets.
Sears Holdings plunged 33.3 percent. U.S. gold futures settled up $1.9, or 0.16 percent, at $1,193.4.
In other metals trading, silver rose 2 percent and copper added 0.8 percent. Every one of the 11 S&P 500 sectors finished down for the day.
The dollar fell to 111.94 yen from 112.59 yen, and the euro rose to $1.1594 from $1.1525.