Sentiment was also hit by disappointing manufacturing data for China, the global economy's growth engine.
The blue-chip Dow Jones lost 295.01 points, or 2.47 per cent, to 11,660.00 in closing trade.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
The tech-heavy Nasdaq was down 77.03 points, or 2.87 per cent, to 2,607.38.
The S&P 500 shed 34.85 points, or 2.78 per cent, to 1,218.45.
The turmoil saw some European markets slump by 5.0 percent and more and pushed borrowing rates uncomfortably near record levels for Italy, which can ill afford to pay extra to raise funding given its strained finances.
Share
