The S&P 500 was down 1.7% in late trading and heading toward its worst day in two months. The Dow Jones Industrial Average was down 781 points, or 1.8%, and the Nasdaq composite was 2.2% lower, with an hour remaining in trading.

U.S. stocks fell sharply Feb. 21 after reports showed that worries among consumers and businesses about President Donald Trump's policies may be hitting the U.S. economy.

U.S. consumer sentiment dropped more than expected in February to a 15-month low and inflation expectations rocketed as households worried that President Donald Trump’s plans for steep and broad-based tariffs would eat into their purchasing power.