The latest discouraging news for traders came from corporate giants FedEx and General Electric, which warned about worsening trends in the economy hurting business.
The S&P 500 fell 1.2% as of 2:41 p.m. Eastern. The benchmark index is down 5.3% for the week, with much of the loss coming from a 4.3% rout on Tuesday following a surprisingly hot report on inflation.
The Dow Jones Industrial Average fell 258 points, or 0.8%, to 30,703 and the Nasdaq fell 1.5%. Both are also on track for steep weekly losses.
Technology stocks, retailers and industrial companies had some of the biggest losses.
Package delivery service FedEx fell 21.8% and is on track for its biggest single-day sell-off on record after warning investors that profits for its fiscal first-quarter will likely fall short of forecasts because of a dropoff in business. It is also shuttering storefronts and corporate offices and expects business conditions to further weaken.
Industrial giant General Electric fell 4.7% after its chief financial officer said it was still bogged down by supply chain problems that were raising costs.
The economic woes were another reason many are mocking the celebration at the White House earlier this week of the so called Inflation Reduction Act.