The Dow Jones industrial average fell 2.2 percent, the tech-heavy Nasdaq Composite Index closed down 1.7 percent and the broad S&P 500 fell 1.5 percent.
For the industrial index, Wednesday's drop is the worst since April last year. The tech-heavy index, which has been battered by last week's AI frenzy, is also 11 percent lower than its peak in June.
As earlier this week, the New York stock market continued to be volatile. The market reacted weakly after the Fed left the US policy rate unchanged in the range of 3.5-3.75 percent, which was in line with expectations. Inflation concerns continue to characterize trading.
The price of oil continued to rise, with a barrel of North Sea oil (Brent) now costing $90.9.
