Investors were already on edge ahead of a key U.S. inflation report this week that could cement additional interest rate hikes by the Federal Reserve.
read more"I think we are seeing the rate hikes really in full effect now," said Allan Small, senior investment adviser at the Allan Small Financial Group with iA Private Wealth.
"The fear is that because the rate hikes have a lagging effect on the economy, we will not feel the full effect of these rate hikes until perhaps 3-6 months down the road."
The International Monetary Fund on Tuesday cut its global growth forecast for 2023, warning that conditions could worsen significantly next year.
Heavily-weighted financials lost 2.3% and technology was down nearly 3%.