The Nasdaq Composite fell as much as 141 points at one stage, and ended down 129.79 points, or 3.1 percent.
On the NASDAQ stocks like Facebook, Google, Priceline Group and Amazon.com fell. This was also accompanied by a fall in biotechnology stocks.
Indian IT Stocks may fall when market opens for trading. Sentiments for these stocks are already very weak, following an appreciation in the rupee and a warning by Infosys and TCS on a subdued revenues growth for Q4.
At a recent investor meet, Infosys CEO S D Shibulal had this to say, "At the beginning of the quarter (Q4) we gave guidance for FY 2014. Several factors may result in our revenues to be near the lower end of guidance."Read more on the Infy guidance here
Indian IT stocks have already declined 10 -15 per cent after hitting 52-week highs earlier this year.