Wednesday's disappointing GDP figures also contributed to the sharp falls in the US.
The Dow Jones slumped 1%, or 195 points to 17,840, while the S&P 500 lost 21 points, or 1%, to 2,085.49 points.
The technology-heavy Nasdaq index ended the day down 1.6%, or 82 points, at 4,941.42 points.
After the close of trading, the business social network site LinkedIn reported a 35% rise in quarterly revenue to $637.7m. However its shares fell sharply in after-hours trading as analysts were disappointed by its sales forecast.
Harman International, which makes audio systems for cars, slipped 7% after posting worse than expected revenue forecasts for 2015.
Online listings company Yelp sank more than 23% after reporting slowing growth for the second consecutive quarter.
On the upside, shares in Glu Mobile, best known for creating the popular Kim Kardashian: Hollywood game soared almost 25% after China's Tencent said it would buy a 14.6% stake in the company for $126m.
The deal with one of China's biggest online gaming companies would help Glu expand in that market, the company said.
The Kardashian game has generated revenue of almost $100m since its release in June 2014 and Glu now plans one based on Britney Spears.
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