Stocks in the US and Asia have fallen on fears over the impact of lockdowns in China on global economic growth.
On Tuesday, the tech-heavy Nasdaq Composite Index closed at its lowest level since late 2020.
Tesla has been a major plunge, with more than $125bn (£99.3bn) wiping out its market value as CEO Elon Musk moves forward with his takeover of Twitter.
Concerns over earnings reports from some of the world’s largest technology companies also weighed on markets.
At the same time, news that Russia will cut gas supplies to Poland and Bulgaria also added to the negative sentiment.
Investors were already concerned about the prospect of aggressive rate hikes in the US and around the world to combat rising global inflation and the war in Ukraine.
Authorities in Beijing are trying to stamp out a Covid-19 outbreak and avoid a repeat of the citywide restrictions that locked down Shanghai for a month.
- Beijing starts mass testing after Covid spike
- Stock markets tumble on China lockdown fears
This has raised concerns about growth prospects in the world’s second-biggest economy and the potential global spillover.
On Wednesday, Japan’s Nikkei 225 index was down 1.4%, while South Korea’s Kospi index fell 1%.
That was followed by stock market declines in New York, with the Dow Jones Industrial Average closing 2.4% lower on Tuesday and the Nasdaq down nearly 4% on Tuesday.
Alvin Tan, head of Asia FX strategy at RBC Capital Markets, told the BBC there were concerns about a potential lockdown in Beijing.
“The extended lockdown in Shanghai and other parts of the country has seriously damaged economic activity and consumer sentiment,” Mr Tan said.
“Beijing alone contributes about 3.5% to China’s GDP, while Shanghai contributes about 4%. So it would be a huge blow to the overall economy if these two cities went into lockdown at the same time,” he added.
Meanwhile, Tesla shares lost more than 12% as the chief executive moved forward with his takeover of Twitter.
“The only thing we know for sure is that Musk considers himself a free speech absolutist, so that’s what the platform’s primary focus will be from now on,” said Dexter Thillien, senior analyst for technology and telecoms at the Economist Intelligence Unit .
After U.S. markets shut down, Google’s parent company Alphabet said the war in Ukraine hurt YouTube’s advertising sales, which helped drive shares lower in after-hours trading.
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