USA stocks slipped Wednesday, putting the S&P 500 on course for a fifth consecutive session of declines as government-bond yields kept rising. That's helped make technology stocks more volatile in the last few months.
Rising U.S. Treasury yields sent investors fleeing from risky assets, hitting technology stocks especially hard on Wednesday.
The advance of US Treasury yields to more than seven-year highs, as well as escalating fears over US-China trade relations, has hurt equity investor confidence, with the major US indexes losing more than two per cent overnight.
The Standard & Poor's 500 index fell 94 points, or 3.3%, to 2,785 on Wednesday, its biggest one-day loss since February 8.
Wall Street stocks has plunged with major indices losing more than three percent in a sell-off prompted by the sudden jump in USA interest rates.
Shares in Facebook, Amazon, Apple, Netflix and Google's parent company Alphabet - the so-called "FAANG" stocks that have driven U.S. markets to all-time highs recently - all fell in NY trading.
Tech stocks and companies that sell non-essentials to consumers have been some of the top performers over the past year, almost doubling the performance of the S&P 500.
The S&P/NZX 50 index declined 19.16 points, or 0.2 per cent, to 9050.82.
Oil firms Hess Corp and Marathon Oil fell around 7 per cent as Chevron dropped 3 per cent ahead of the third-quarter earnings season. The energy sector was close behind with a 2.9 percent loss, as oil extraction in the Gulf of Mexico shutting down due to the hurricane.
"A sustained rise in rates is probably reflective of improving economic conditions, so that in and of itself isn't necessarily a bad thing for stocks", said Willie Delwiche, investment strategist at Baird in Milwaukee.
INFLATION WATCH: U.S. wholesale prices rose a modest 0.2 percent in September, evidence that inflation is tame.
Amazon's stock plunged 6.1 percent while Apple's stock shed 4.6 percent in a late-day sell-off. Silver dipped 0.5 percent to $14.33 an ounce.
Trade-sensitive industrial stocks also fell as tensions between Washington and Beijing persisted. Many stock-market observers pin the start of the current bull market, the longest since World War II, at March 9, 2009. Brazil's Bovespa lost 2.5 percent and the Merval in Argentina sank 2.2 percent.
Japan's Nikkei 225 added 0.2 percent, South Korea's Kospi dropped 1.1 percent and the Hang Seng in Hong Kong gained 0.1 percent.
The euro and sterling rose, underpinned by optimism for a Brexit deal, while the US dollar lost ground against a basket of currencies even as USA yields hovered near multiyear peaks.
The dollar fell to 112.59 Japanese yen from 113.05 yen late Tuesday.