The Dow tumbled 238 points on Tuesday in the biggest slide since President Donald Trump took office in November.

Shares fell over concerns that higher interest rates and pro-growth US policies were on hold, boosting safe-haven Treasuries and gold and sending the dollar to a nearly four-month low against the yen.

The US S&P 500 financial sector fell as much as 3.1 per cent and posted its biggest daily plunge in about nine months, contributing to the worst daily performance for the benchmark S&P 500 since October 11.

'The market is starting to get a little fed up with the lack of progress in healthcare because everything else is being put on the back burner,' said R.J. Grant, head of trading at Keefe, Bruyette & Woods in New York.

The Dow tumbled 238 points on Tuesday in the biggest slide since President Donald Trump took office in November. Some have blamed the fall on the Trump administration's 'lack of progress in healthcare'

Investors saw the Trump administration's struggles to push through the healthcare legislation overhaul as a sign he may also face setbacks delivering promised corporate tax cuts. Pictured is a chart depicting the 238-point drop for the Dow

The plunge is the biggest since Trump took office. Initially, Dow futures tumbled more than 700 points over fears of a Trump presidency immediately after he was elected.

But a day later, the Dow index closed on 18,586 after rising more than 250 points in what experts described as the biggest market turnaround since the 2008 global financial crisis.

Analysts attributed the selling to reduced confidence that Trump's pro-growth policies, including financial deregulation, would occur soon, and to concerns of a dovish Federal Reserve.

The Fed stuck to its outlook for two more hikes this year last week, instead of the three expected by many market participants.

Investors also saw the Trump administration's struggles to push through the healthcare legislation overhaul as a sign he may also face setbacks delivering promised corporate tax cuts.

'President Trump's legislative agenda is getting mired in a congressional swamp, as starry-eyed optimism runs headlong into bloodshot realism,' wrote BMO chief investment officer Jack Ablin in a note to clients Tuesday, according to CNN Money.

The tech-heavy US Nasdaq Composite fell as much as 1.9 per cent after hitting a record intraday high earlier on the back of a rise in Apple shares, which briefly touched a record $142.80 a share before falling 1.15 per cent to close at $139.84.

Europe's broad FTSEurofirst 300 stock index also fell after hitting a 15-month high, to close down 0.50 per cent at 1,480.99. MSCI's all-country world equity index was last down 3.01 points, or 0.67 percent, at 448.05.

The tech-heavy US Nasdaq Composite (pictured) fell as much as 1.9 per cent after hitting a record intraday high earlier on the back of a rise in Apple shares, which briefly touched a record $142.80 a share before falling 1.15 per cent to close at $139.84

Market expert, KC Mathews, said the recent fall in stocks shows that investors are realizing Trump won't be able to get everything he wants done as fast as he'd like

Market expert, KC Mathews, told CNN that the recent fall in stocks shows that investors are realizing Trump won't be able to get everything he wants done as fast as he'd like.

'Trump is trying to be the CEO president. That doesn't work in politics,' said KC Mathews, chief investment officer with UMB Bank.

The Dow Jones Industrial Average ended down 237.85 points, or 1.14 per cent, at 20,668.01. The S&P 500 closed down 29.45 points, or 1.24 per cent, at 2,344.02. The Nasdaq Composite ended down 107.70 points, or 1.83 per cent, at 5,793.83.

Safe-haven gold, the yen and US Treasuries all benefited. The dollar hit 111.55 yen, its lowest since November 28, while gold hit a more than two-week high of $1,247.60 an ounce and benchmark 10-year US Treasury note yields touched a nearly three-week low of 2.419 per cent.

The euro hit $1.0819, its highest against the dollar since February 2. Centrist Emmanuel Macron cemented his position as front-runner in the first televised French presidential debate on Monday versus anti-European Union contender Marine Le Pen.

'It's probably going to take some sort of meaningful change in expectations around monetary or fiscal policy to revive the dollar and set it back on a strengthening trend,' said Erik Nelson, a currency analyst at Wells Fargo in New York.

US crude oil prices hit a one-week low of $47.23 a barrel as concerns about new supplies overshadowed the latest talk by OPEC that it was looking to extend output cuts beyond June.

Brent crude settled down 66 cents, or 1.28 per cent, at $50.96 a barrel. US crude settled down 88 cents, or 1.82 per cent, at $47.34, which marked the lowest settlement price since November.