The Dow Jones industrial average fell 1.59 percent to 12,814.35, down 206.48 points. The Standard and Poor's 500 index dropped 1.81 percent to 1,392.57, down 44.82 points. The Nasdaq composite index of tech-dominated stock fell 1.8 percent to 2,438.49, down 44.82 points.

On the New York Stock Exchange, 876 stocks advanced and 2,243 declined on a volume of 1.277 billion shares traded.

The 10-year U.S. Treasury note gained 20/32 to yield 3.844 percent.

The dollar was mixed. The euro traded at $1.5392 from Tuesday's $1.5524, while the dollar traded at 104.68 yen from Tuesday's 104.71 yen.

In Tokyo, the Nikkei index gained 53.22 points to 14,102.48, up 0.38 percent.

In London, the FTSE 100 index gained 45.80 to 6,261.00, up 0.74 percent.