The stock market closed sharply lower, extending a weeklong slide, as the Dow Jones industrial average plunged more than 600 points.
Stocks ended their worst week in two years Friday, and the Dow's drop was its biggest in percentage terms since June 2016.
Several giant U.S. companies dropped after reporting weak earnings, including Exxon Mobil and Alphabet. Apple and Chevron also fell.
Bond yields rose sharply after the government reported the fastest wage growth in eight years, stoking fears of inflation.
The Dow fell 665 points, or 2.5%, to 25,520.
The Standard & Poor's 500 index dropped 59 points, or 2.1%, to 2,762. The S&P is down almost 4% since hitting a record high a week ago.
The Nasdaq fell 144 points, or 2%, to 7,240.
Technology shares dipped after Google's parent company Alphabet (GOOG) reported results that missed analysts' forecasts. Its results came up short of expectations, thanks to a $10 billion tax hit from the new law. Meanwhile, ExxonMobil (XOM) and Chevron (CVX) also reported disappointing results, pushing their shares lower.
Economists and analysts have cautioned about the heightened risk of a market correction following months of steadily climbing equity valuations. Based on long-term measures, the U.S. stock market is trading at levels that were last witnessed during the late 1990s, when lofty valuations on dot-com stocks pushed the market higher, according to Oxford Economics.
"The surge in equity prices and valuations since last August, from already high levels – which we dubbed a 'melt up' earlier this month – would appear to increase yet further the risk of a significant correction," Oxford Economics lead economist Adam Slater wrote in a research note earlier this month.
The Dow is on track for what would be the fourth-largest decline in its history. On Oct. 13, 2008, in the early days of the financial crisis, the blue-chip index plummeted 11%, or 936 points. Since 1946, there have been 46 corrections of more than 10% in U.S. equities, or about one every 18 months, Slater noted.
(The Associated Press, CBS News contributed to this report.)
