Dow sinks below 23,000; Nasdaq flirts with a bear market; Oil in free fall

"Equity markets are quickly approaching the capitulation phase after having broken below critical support," Sam Stovall, chief investment strategist at CFRA Research, told CNN Business.

Market sentiment wasn't helped by a surprise deepening in the budget fight in Washington either. House Speaker Paul Ryan said President Donald Trump won't sign the spending bill needed to prevent a government shutdown. Although a short-term shutdown would not have a large impact on the national economy, it would serve as a reminder of government dysfunction.