In the US, the three main financial indexes saw their worst day in weeks, with the Dow Jones Industrial Average down almost 7%.
The decline came a day after America's central bank said the US faces a long road to recovery.
They follow a weeks-long rally that had helped shares recover some ground from March lows.
Energy and travel stocks were among the biggest losers, as oil prices also took a hit.
Earlier, European and Asian shares also dropped, with the UK's FTSE 100 sinking about 4%. In Germany, the Dax fell 4.4%, while in France the CAC 40 ended 4.4% lower.
Source:
BBC