Hong Kong and Shanghai were in focus after suffering a diabolical previous three days in the wake of Beijing unveiling a series of measures aimed at curbing a range of industries -- including tech and private tuition -- that have raised fears of further action.

The struggles in Asia were reflected in New York, where the Nasdaq led losses. And while some of the selling was down to profit-taking after all three indexes hit records on consecutive days, analysts said unease about China's moves played a role.

"The turmoil in tech stocks in China is finally bleeding into US tech stocks," said Chris Murphy, of Susquehanna International Group, adding that he was "concerned investors will lighten up in general" after major tech earnings heading into "a seasonably weak period for equities".

Murphy's comments came as Apple, Google-parent Alphabet and Microsoft all announced better-than-expected results, but their after-hours share prices dropped.

"The key takeaway from this wrath of earnings was that risk appetite will likely struggle going forward given the persistent struggles with supply chains, concerns over growth in China, and uncertainty over how much more monetary and fiscal support this economy will see," said OANDA's Edward Moya.

"Wall Street has priced in lower interest rates for longer and now we need to see if the current delta variant concerns will make the Fed push back any hint of taper announcement until the end of the year."

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