The Dow Jones industrial average closed 1,033 points lower on Thursday, the second day of the week it has experienced a four-digit loss.
The Dow fell 4.1 percent, closing at 23,860. The Nasdaq lost 274 points on the day (3.9 percent), while the S&P 500 closed with a 100-point loss (3.75 percent).
Thursday's close is the second time in history the Dow has lost more than 1,000 points in one day. It fell 1,175 points on Monday.
The latest plunge in stocks means a market correction has officially taken place, as the market has dropped more than 10 percent from a peak on Jan. 26.
Overall, the Dow has 2,756 points since Jan. 26, erasing 2018’s early stock gains and cutting into the massive increase the index experienced during President TrumpDonald TrumpJan. 6 panel faces double-edged sword with Alex Jones, Roger Stone Trump goes after Woodward, Costa over China Republicans seem set to win the midterms — unless they defeat themselves MORE’s first year in office.
Investors fear that low unemployment, increasing U.S. growth and rising wages will spur the Federal Reserve to raise interest rates, which would boost the cost of borrowing money.
Trump on Wednesday said traders selling stocks are making a "big mistake" and that those trading stocks will regret their actions.
"In the 'old days,' when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down," Trump tweeted. "Big mistake, and we have so much good (great) news about the economy!"