The Nasdaq slumped 213.67 points (0.9%) to 22,740.40, the Dow slid 334.33 points (0.7%) to 46,590.41 and the S&P 500 fell 35.95 points (0.5%) to 6,699.40.

Netflix (NFLX) plunged by 10.1% leading to a slump by Nasdaq. Netflix came under pressure after the company reported weaker than expected third quarter earnings, citing a dispute with Brazilian tax authorities. Texas Instruments (TXN) also tumbled by 5.6% after the chipmaker provided disappointing fourth quarter guidance. Intuitive Surgical (ISRG) soared by 13.9% after the robotic-assisted surgery systems maker reported third quarter results that beat expectations.

The weakness on Wall Street also came amid renewed uncertainty about trade relations between the U.S. and China following the latest remarks from President Donald Trump. The major averages fell to their lows of the session after a report from Reuters indicated the Trump administration is considering a plan to curb an array of software-powered exports to China. Reuters said the plan is not the only option on the table but noted it would make good on Trump's threat to bar critical software exports to China in retaliation for Beijing's latest round of rare earth export restrictions.

Semiconductor stocks came under significant selling pressure over the course of the session, with the Philadelphia Semiconductor Index tumbling by 2.4%. Airline stocks were considerably weak, as reflected by the 1.9% loss posted by the NYSE Arca Airline Index. Retail, housing and networking stocks also saw notable weakness on the day, while energy stocks bucked the downtrend amid a sharp increase by the price of crude oil.

Asia-Pacific stocks turned in a mixed performance. Hong Kong's Hang Seng Index slid by 0.9% and Japan's Nikkei 225 Index edged slightly lower, while South Korea's Kospi surged by 1.6%. The major European markets also ended the day mixed while the U.K.'s FTSE 100 Index advanced by 0.9%, the French CAC 40 Index fell by 0.6% and the German DAX Index declined by 0.7%.

In the bond market, treasuries fluctuated over the course of the session before closing modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 1 bp to 3.95%.

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