NEW YORK, Jan. 19 (Xinhua) — U.S. stocks fell on Wednesday with the Nasdaq closing in correction territory as tech shares extended their losses.

The Dow Jones Industrial Average dropped 339.82 points, or 0.96 percent, to 35,028.65. The S&P 500 decreased 44.35 points, or 0.97 percent, to 4,532.76.

The Nasdaq Composite Index dipped 166.64 points, or 1.15 percent, to 14,340.26, 10.7 percent off its most recent record closing high set in November. A decline of 10 percent or greater is considered a correction for a stock index.

Nine of the 11 primary S&P 500 sectors ended in red, with consumer discretionary and financials down 1.81 percent and 1.65 percent, respectively, leading the laggards. Technology sank 1.37 percent as investors continued to rotate out of highflying stocks. Consumer staples and utilities rose 0.68 percent and 0.46 percent, respectively, the only two gaining groups.

U.S. equities have been under pressure recently as investors are preparing for Federal Reserve’s policy tightening.

Fed officials signaled last week that the central bank could start raising interest rates in March after U.S. annual inflation surged to an almost 40-year high in December.

U.S.-listed Chinese companies traded mostly lower on Wednesday with seven of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on a downbeat note.