US stocks have tumbled after Dow components Cisco and Walmart spotlighted the weak economic outlook in their earnings reports.
At the closing bell, the Dow Jones Industrial Average dropped 224.70 (1.47 per cent) to 15,112.96.
The broad-based S&P 500 gave up 24.06 (1.43 per cent) at 1,661.33, while the tech-rich Nasdaq Composite Index lost 63.16 (1.72 per cent) at 3,606.12.
Information technology giant Cisco cited a "softening" outlook in emerging economies as it announced it would cut 4000 jobs.
Meanwhile, Walmart became the latest retailer to release disappointing earnings, slashing its 2013 earnings forecast on weak consumer spending.
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Some market watchers also cited revived speculation that the Federal Reserve could taper its bond-buying program as a factor in Thursday's losses.
Dan Greenhaus, chief global strategist at BTIG, said Thursday's economic data "led people to increase their odds of the Fed reducing purchases in September," thereby prompting a rise in bond yields that unnerved equity markets.
Thursday's US economic data included upbeat reports on jobless claims and homebuilder sentiment, but mediocre results on consumer prices and industrial production.
