Wall Street was caught in another wave of aggressive selling overnight, as volatility surged and investors continued to dump technology stocks.

Markets at 7:30am (AEDT): ASX SPI 200 -1.6pc at 5,700, ASX 200 (Wednesday's close) -0.2pc at 5,829

ASX SPI 200 -1.6pc at 5,700, ASX 200 (Wednesday's close) -0.2pc at 5,829 AUD: 70.7 US cents, 54.8 British pence, 61.97 Euro cents, 79.23 Japanese yen, $NZ1.08

AUD: 70.7 US cents, 54.8 British pence, 61.97 Euro cents, 79.23 Japanese yen, $NZ1.08 US: Dow Jones -2.4pc at 24,583, S&P 500 -3.1pc at 2,656, Nasdaq -4.4pc at 7,108

US: Dow Jones -2.4pc at 24,583, S&P 500 -3.1pc at 2,656, Nasdaq -4.4pc at 7,108 Europe: FTSE +0.1pc at 6,963, DAX -0.7pc at 11,192, CAC -0.3pc at 4,953, Euro Stoxx 50 -0.3pc at 3,130

Europe: FTSE +0.1pc at 6,963, DAX -0.7pc at 11,192, CAC -0.3pc at 4,953, Euro Stoxx 50 -0.3pc at 3,130 Commodities: Brent crude -1.2pc at $US75.51/barrel, spot gold +0.2pc $US1,232.43/ounce, iron ore +0.6pc at $US74.73/tonne.

The industrial-skewed Dow Jones index has wiped out all its gains for this year after it dropped 608 points, or 2.4 per cent, to 24,583.

The benchmark S&P 500 lost 3.1 per cent, marking its sixth straight day of losses.

The S&P technology sector (-3pc) was hit the hardest, after the share prices of Apple (-3.4pc), Facebook (-5.4pc), Google (-5.2pc) and Netflix (-9.4pc) fell sharply.

This caused the tech-heavy Nasdaq index to plummet by 4.4 per cent.

Volatility on the rise

Several factors dampened investor sentiment overnight — causing the volatility index (VIX) to surge 21.8 per cent to 25.2 points.

The Federal Reserve released its latest report on the US economy, the Beige Book, which said factories have lifted their prices due to the Trump administration's tariffs.

Furthermore, the latest figures from the US Commerce Department revealed that new home sales fell to a two-year low — the latest sign that rising mortgage rates and higher property prices were hurting demand.

There have also been disappointing quarterly earnings from several big-name companies, international condemnation of Saudi Arabia — a major oil producer — over the killing of journalist Jamal Khashoggi, and concerns that the US-China trade war is causing the global economy to slow down.

Australian shares are also headed for a substantial drop this morning, following the collapse in US investor sentiment.

The Australian dollar has fallen further to 70.6 US cents.

But it has risen to 54.8 British pence and 62 Euro cents, after some weaker-than-expected European economic figures.