This also lifted the yield for United States 10 year government bonds, a global benchmark for commercial lending, past a four-year high of 2.92 per cent. Some traders took that as a signal that the Fed may raise rates more quickly than the market expected.
In Canada, the S&P/TSX composite index was down 48.73 points to 15,393.95 in a largely broad-based decline.
Worries about potentially higher rates and inflation have reintroduced markets to volatility following their unusually calm run in 2017 and early this year.
For the month, the Dow lost 4.3% and the S&P 500 fell 3.9%. It raised rates three times last year, and investors are debating whether it will add another three or four increases this year.
The Dow Jones industrial average fell 374 points, or 1.5 percent, to 24,645, and the Nasdaq composite lost 83, or 1.2 percent, to 7,190.
Man United in a good place despite constantly shifting opinion
United manager Jose Mourinho described his team's defending for that goal as "disgraceful, childish". They weren't clapping when Matic's brilliant stoppage-time shot flew into the Palace goal.
The S&P 500 trimmed its loss as the day went on, and it was virtually flat at 2,677, as of 3 p.m.
SEC CALLING: Overstock.com dropped 5 percent after the online retailer disclosed in a regulatory filing that the Securities and Exchange Commission asked the company last month for information about a $250 million offering by its blockchain subsidiary, tZero, related to digital tokens. The two-year yield, which moves more on expectations of Fed movements, held steady at 2.22 per cent.
Federal Reserve chair Jerome Powell had earlier given the market a boost by saying in his second round of congressional testimony that the central bank did not see strong evidence of wage inflation or signs of overheating.
Patterson Companies fell to the biggest loss in the S&P 500 after it reported weaker earnings for the latest quarter than analysts expected and said that its chief financial officer was leaving.
France's CAC 40 fell 1.1 percent and Germany's DAX was down 2 percent. The concerns at one point helped knock the S&P 500 down 10 percent from its record high, set in late January.
Samsung's Oscars 2018 Galaxy S9 ad encourages you to make things happen
Thankfully, Samsung still includes its own email, calendar, contacts, image gallery, music player, and web browser software. Please let me know if there is anything specific you want me to test and discuss in my full review.
Energy (-2.3%) was the weakest of the S&P 11 industry groups, moving lower alongside the price of crude oil after the weekly US crude oil inventory report showed inventories rising by 3M barrels last week; April WTI futures dropped 2.2% to $61.64/bbl.
In the commodities markets, benchmark USA crude rose 26 cents to settle at $61.25 per barrel. London's FTSE 100 was down 0.7% in afternoon trade. Brent crude, the worldwide standard, lost 90 cents to $63.83 a barrel.
On the commodities front, oil has dropped slightly and gold is also down.
It has also fallen against the British pound (-0.4pc), euro (-0.2pc) and Japanese yen (-0.5pc).
Japan's Nikkei 225 declined 1.39%.
Kelly: I have 'nothing to even consider resigning over'
But Kelly did admit to reporters that senior White House aides "didn't cover ourselves in glory" in how they handled the fallout. Porter resigned in disgrace early February after reports surfaced of his history of beating two of his ex-wives.