The Nasdaq tumbled 304.55 points (1.7%) to 17,504.12, the S&P 500 slumped 60.46 points (1.1%) to 5,614.66 and the Dow slid 260.32 points (0.6%) to 41,581.31.

The Federal Reserve released a report showing industrial production in the U.S. increased by much more than expected in the month of January. The report said industrial production climbed by 0.7% in February after climbing by a downwardly revised 0.3% in January. The Commerce Department also released a report showing new residential construction rebounded by much more than anticipated in the month of February.

Airline stocks were significantly weak with the NYSE Arca Airline Index falling by 1.8%. Biotech stocks were considerably weak, resulting in a 1.9% slump by the NYSE Arca Biotechnology Index. Computer hardware, semiconductor and software stocks turned out to be notably weak, contributing to the steep drop by the tech-heavy Nasdaq.

Asia pacific stocks moved mostly higher. Japan's Nikkei 225 Index shot up by 1.2%, while Hong Kong's Hang Seng Index surged by 2.5%. The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.0%, the French CAC 40 Index climbed by 0.5% and the U.K.'s FTSE 100 Index rose by 0.3%.

In the bond market, treasuries moved higher over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 2.5 bps to 4.28%.

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