He said indications of "inflation risk on the horizon" - including higher-than-expected jobs and wage growth last week amid higher labor costs in manufacturing and non-manufacturing - was fueling the market's nose dive.
Corrections are seen as entirely normal occurrences, and the market, now in its second-longest bull run of all time, has not seen one in two years, an unusually long time.
A wild session on Tuesday had seen the Dow swing more than 1,100 points from peak to trough and ended with the benchmark S&P 500 recording its best day since just before President Donald Trump's election in 2016. The S&P 500 dropped 100.66 points, or 3.75 percent, to 2,581.00.
And the Russell 2000 index of smaller-company stocks dropped 44.18 points, or 2.9 per cent, to 1,463.79.
In Toronto, the S&P/TSX composite index was lower by 0.7 per cent at 15,222 points - marking its seventh consecutive day of declines. Eight stocks fell for every one that rose on the New York Stock Exchange and 490 of the companies in the S&P 500 took a loss.
The White House, which touted a strong stock market after the Dow climbed above 26,000 for the first time in January, has maintained the "fundamentals" of the economy remain strong despite the volatility.
Higher wages at a time of almost full employment are also seen as likely prodding the Federal Reserve to raise interest rates at a faster pace, which would act as a brake on the economy. As a result, the biggest losses went to high-dividend companies such as utility and real estate companies, which investors often buy as an alternative to bonds.
Winter Storm Warning is in effect for Wednesday into Wednesday night
The Quincy High School Hall of Fame induction was delayed from Friday night to next Friday , February 16th. We certainly have a good chance of some areas seeing a foot or more of new snow over the next three days.
Fears about the bond market, inflation and interest rates seized investors again Thursday and drove the Dow, the S&P 500 and the Nasdaq all into the red for the year. Fears about inflation have fueled concerns about the outlook for the economy that is dogging both stocks and bonds alike, with the 10-year Treasury note pulling back from an early yield around 2.88%, presently yielding 2.85%.
"When the market declines sharply, everyone naturally wonders, 'What's wrong?' Nothing is wrong economically", said Greg McBride, chief financial analyst for Bankrate.com, according to NBC News.
"I wouldn't be very surprised if we weren't seeing intraday volatility last for the next two to three weeks". Brent crude, the benchmark for global oil prices, lost 76 cents, or 1.1 percent, to $66.86 a barrel in London. Spot gold was down 1.0% at $1,326.51 an ounce. Heating oil dipped 3 cents to $1.99 a gallon.
Falls were widespread in Europe, with Germany's Dax down 2.6% and France's Cac 3%.
The dollar index rose 0.84 percent, with the euro down 0.03 percent to $1.2258.
Japan's Nikkei 225 average lost 2.8 percent to 21,240.05 in early trading Friday.