The Dow slid 332.13 points, or 4%, to 7949.09. All 30 of its components fell, with financial names especially hard hit. Bank of America fell 29% and J.P. Morgan Chase fell 21%. Citigroup declined 20%. The S&P 500 fell 5.3% to 805.22. All its sectors fell, led by the financial group, which plummeted 16.3% to close at a new record low.
Other market yardsticks swooned on Tuesday. The Nasdaq Composite Index fell 5.8% to 1440.86. The Russell 2000 fell 7% to 433.65.
The dollar weakened against major rivals. One euro cost $1.2905, up from $1.2882 late Friday. One dollar fetched 89.74 Japanese yen, down from 89.77 yen.