The tech-heavy Nasdaq fell 1.4 percent, the S&P 500 fell 0.8 percent, and the Dow Jones fell 0.3 percent.
For Microsoft, the downturn continued in the wake of the company's interim figures, with its stock down 3 percent on Tuesday. Meta also saw red, falling 2.1 percent.
Nvidia also fell, losing 3.3 percent.
"I would say we have one or two periods like this every year. It's never the same cause, but the effect is always the same. Some of the most popular trades from the last upswing are getting incredibly hard-hit," wealth manager Josh Brown told CNBC.
Things went even worse for Danish pharmaceutical giant Novo Nordisk, with the stock plunging around 14 percent after predicting lower sales and operating profit in a quarterly report released on Tuesday afternoon.
The sour mood was also felt in the crypto market, where Bitcoin at times fell below $75,000 - the lowest level since Donald Trump made his return to the White House, according to Bloomberg.
