U.S. equities indices posted their worst single-day plunge in two months on renewed concerns, spurred by the recent exorbitant inflation data from the U.K., that the Fed will be compelled to take yet more aggressive action to fight inflation, slowing economic growth. At the upcoming meeting due later this week in Jackson Hole, Wyoming, Fed Chairman Jerome Powell and other key regulatory officials are expected to shed light on the future of monetary policy. Interestingly, the CME Group's FedWatch based on fed funds futures data now shows the probabilities of a Fed rate hike by 75 basis points (bps) in September have surpassed earlier estimates of a 50-bp increase.

The selloff was broad-based, with every stock in the Dow having finished in red. High-tech stocks were particularly hard-hit. Shares of Intel (INTC) sank 4%, and Salesforce (CRM) shares dipped 3%. Shares of all of the FAAMG firms lost more than 2%. Shares of streaming services dropped, with Warner Bros. Discovery (WBD) and Netflix (NFLX) among the worst-performing stocks in the S&P 500.

Earningswise, Zoom Communications (ZM) cut its annual profit and revenue forecasts as demand for the video-conferencing platform apparently cooled off from pandemic highs amid stiff competition from Microsoft Teams and Cisco WebEx. Macy's (M) stated earlier today in its latest earnings report that it decided to lower its FY sales and EPS guidance to include "risks related to increased macroeconomic pressures." According to the report, the company’s revenue remained at $5.6 billion, virtually unchanged from last year, whereas its EPS decreased by 8.3% to $0.99, and net income fell by 20% to $275 million.

AMC Entertainment (AMC) sank 35% after UK-based Cineworld's warning of a possible bankruptcy spooked investors ahead of the American cinema chain's preferred stock listing.

In Europe, as of 3:50 p.m. CET, the German DAX declined by just 0.02%, while the British FTSE 100 lost 0.56%, and the French CAC 40 traded lower by 0.15%. The pan-European Euro Stoxx 600 was lower by 0.46%, despite oil and gas stocks bucking the trend and pushing higher. Benchmark gas prices in the European Union spiked 13% overnight, as damage to a key pipeline system running oil from Kazakhstan through Russia and into Europe disrupted supply.

In Asia earlier today, Japanese stocks traded lower, dragged by drops in tech and auto stocks overseas yesterday. Airline, biotech and electronics stocks also retreated. Investors were focusing on economic data and their implications for BoJ and PBOC policy-making. The Nikkei Stock Average was down 1.19% at 28453. South Korea's Kospi fell 1.1% while China’s Shanghai Composite declined just 0.05% to its close and Shenzhen index dived 0.40%.