In London, the FTSE 100 was down by 1% as hopes of a Brexit deal lifted the pound - weakening the sterling value of earnings for numerous global index's multinational constituents. Investors see many of these countries as being vulnerable to higher USA interest rates, which can pull away investment dollars.
The NZX50 fell 1.15 per cent last week and this week is down around 1.8 per cent. Boeing lost 4.7 per cent to US$367.57 and Alphabet, Google's parent company, gave up 4.6 per cent to US$1092.16.
USA government bonds resumed a selloff after rising to multi-year highs last week, with the 2-year yield rising to 2.906%, its highest level since June 2008.
Rising interest rates by the Federal Reserve drove US Treasury yields to 7-year highs, while Hurricane Michael's landfall in Florida stoked fears of impact on energy companies, according to market analysts. It was at just 3.05% early last week and 2.82% in late August.
COMMODITIES: Benchmark U.S. crude oil fell 60 cents to $74.36 per barrel. Chip gear producers Applied Materials, Teradyne and ASML Holdings fell between 3.5 percent and 4.6 percent.
Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said the stocks have become more volatile in the last few months because investors have concerns about their future profitability. A move of more than two deviations, or 40 basis points now, leads to negative S&P 500 returns, Goldman says.
Paint and coatings maker PPG gave a weak third-quarter forecast Monday, while earlier, Pepsi and Conagra's quarterly reports reflected increased expenses.
The 10-year Treasury yield rose to 3.22 per cent from 3.20 per cent late Tuesday after earlier touching 3.24 per cent.
Technology and internet-based companies are known for their high profit margins, and many have reported explosive growth in recent years, with corresponding gains in their stock prices.
In addition, Fundstrat's Robert Sluymer argues that in the near term, stocks look oversold and "due for a rebound", as the S&P tests its first support at its 50-day moving average, and the Nasdaq, at its 100-day moving average. Over the years, Sears has closed hundreds of stores and sold several famous brands.
The biggest driver for the market over the last week has been interest rates, which began spurting higher after several encouraging reports on the economy. Brent crude, the worldwide standard, lost 2.2 per cent to US$83.09 a barrel in London. Concerns about consumer spending have also led to jitters about United States companies as they prepare to unveil results for the third quarter of the year over the coming weeks.
Tech-related stocks were the biggest decliners, the sector shedding 4.0 per cent following an overnight USA session in which tech was badly hit, but the heavyweight financial and materials sectors were also deep underwater.
Investors sold off U.S. government bonds, with the two-year yield touching its highest point since June 2008.
Big moves in interest rates tend to unsettle investors, and they can also push them to sell stocks and buy bonds instead. Brazil's Bovespa lost 2.5 per cent and the Merval in Argentina sank 2.2 per cent.
There were, however, slight lifts for Japan's Nikkei, which added 0.2 per cent, and Hong Kong's Hang Seng, which gained 0.2 per cent.