Stocks fell sharply on Wednesday, adding to Wall Street's poor start to the final quarter of 2019 as investors grapple with fears of an economic recession and the impeachment inquiry of President Donald Trump.
The Dow Jones Industrials plunged 495.77 points, or 1.9%, to 26,077.27, to break below its 50-day and 100-day moving averages, two technical levels watched by traders.
The S&P 500 slumped 34.05 points, or 1.2%, to 2,906.20, to fall below its 100-day moving average as the industrials sector dropped 2.3%. The tech sector lost more than 2%.
The NASDAQ Composite stepped back 87.64 points, or 1.1% to 7,821.05, as large-cap tech companies followed the broader market lower. Amazon, Apple and Alphabet all dropped at least 0.9%. Microsoft shares also fell 2%.
Some traders also said worries around Trump's impeachment process dampened sentiment on Wednesday. Stocks have risen sharply since Trump's election as the administration has pushed through market-friendly policies such as lower corporate taxes and deregulation.
Trump tweeted this "impeachment nonsense" was driving stocks lower. House Speaker Nancy Pelosi announced an impeachment inquiry into Trump last month for alleged abuse of power.
Wall Street's focus remained on the economic data as private payrolls growth slowed down in September, according to a report from ADP and Moody's Analytics. Payrolls increased by 135,000 in September, a drop from 157,000 in August. The gains from August also reflected a downward revision of nearly 40,000 payrolls.
The data from ADP and Moody's Analytics is seen by investors as a preview to the government's monthly jobs report, which will be released Friday
Prices for the benchmark 10-year U.S. Treasury improved, lowering yields to 1.60% from Tuesday's 1.64%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.36 to $52.26 U.S. a barrel.
Gold prices regained $18.30 to $1,507.30 U.S. an ounce.