Along with the Dow, the S&P 500 also saw losses of three percent and turned negative for 2018.
The Nasdaq Composite fell by 4.4 percent.
In the month of October alone, the Dow has fallen by 7.1 percent, S&P by 8.9 percent and Nasdaq by 11.7 percent.
Major tech companies also fell victim to heavy loses yesterday.
Facebook saw a loss of 5.41 percent, Amazon plummeted by 5.91 percent, Google’s parent company Alphabet by 5.17 percent, AT&T by 8.08 percent and Netflix by 9.4 percent.
Alex Young, the managing director of global markets research at FTSE Russell, explained that 2019 has a cloud looming above its head as markets continued to plunge this month.
He said: “An increasingly murky macro picture is clouding the 2019 earnings outlook, leaving investors to largely shrug off a solid start to the third quarter earnings season.”
Mark Grant, managing director and chief global strategist at B.Riley FBR Inc, added: “You don’t leave the office on days like this.
“Clients from different places in the world are calling us asking, ‘What is this? What should we do?’”
On Tuesday, some markets began to see improvement, but industrial manufacturing company Caterpillar saw a 7.5 percent drop in their quarterly earnings in a single day.
This led to a 10 percent loss in its stock value.
3M conglomerate also saw losses of 4.4 percent.