Stock markets took notice to news of Argentina's defaulting on its debt and responded by sinking.

Investors are already weary of weak corporate earnings growth, rising interest rates and a bull market that may have worn out its welcome.

The Dow Jones Industrial Average fell 317.06 points to 16,563.30. That removes all of 2014's gains on the index. The big drop was the third-biggest fall on the index and its worst since a 267-point loss on April 10.

Investors responded by selling, especially in the afternoon.

The S&P 500 fell two percent down to 1930.67, a six-week low. The NASDAQ lost 2.1 percent as well.

Since Thursday was the last trading day of July, the losses eliminate a five-month string of gains in the Dow and S&P indexes.

The major news Thursday morning was Argentina's failure to pay back debt for the second time in 13 years. Talks broke down between Argentina and U.S. creditors over a missed debt interest payment and that sent the country into default.

Besides concerns with Argentina's debt default, corporate earnings growth have been weak and that has set global uncertainity in the markets. In Europe, sanctions against Russia have increased and that too is causing concern to investors.

With fears that the Federal Reserve could hike interest rates sooner than what was expected and weak European economies, a fall in the stock market was almost expected. 

"Good news is getting to be bad news again," Jack Ablin, chief investment officer at BMO Private Bank said. "The GDP report is obviously good news, so why are stocks off? Because people are wondering when the party will end."

Disappointing reports from Exxon Mobil and Whole Foods Market lead them both to decline Thursday. 

Crude oil futures for September delivery fell by $2.10, ending at $98.17 a barrel. That could signify cheaper gas prices.