The Dow Jones Industrials tumbled 293.47 points to 41,914.75
The S&P 500 index skidded 10.68 points to 5,722.25.
The NASDAQ Composite eked ahead 7.68 points to 18,098.39.
Notable losers of the day include General Motors and Ford, which slid 5% and 4%, respectively, after downgrades from Morgan Stanley.
Seven of the 11 sectors of the S&P 500 were in negative territory, led lower by energy as U.S. crude futures fell more than 2%. Chevron shares slumped 2%.
Tech was a bright spot in the market. Hewlett Packard Enterprise advanced more than 4% following an upgrade from Barclays, citing strong artificial intelligence data center demand as a positive catalyst. Chip powerhouse Nvidia added about 2%, bringing its market capitalization over the $3 trillion mark.
All three averages are on track for a positive September, though fears of a slowing economy still linger after last week’s rate cut from the Federal Reserve.
On the data front, new home sales slipped 4.7% in August to 716,000, down from July’s revised reading of 751,000. Investors will also look toward weekly jobless claims on Thursday.
Prices for the 10-year Treasury dropped, lifting yields to 3.79% from Tuesday’s 3.73%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.83 at $69.73 U.S. a barrel.
Gold prices gained $7.20 to $2,684.20 U.S. an ounce