The Dow Jones Industrials plunged 554.34 points, or 1.6%, to 33,497.33.
The S&P 500 dipped 71.06 points, or 1.7%, to 4,096.83.
The NASDAQ Composite let go of 188.72 points, or 1.6%, to 12,023.88.
Small and large banks fell, as traders questioned the future of some regional financial institutions after the crisis that engulfed Wall Street in March. Regional banks PacWest and Western Alliance had trading paused after tumbling more than 20%.
Meanwhile, JPMorgan Chase’s shares shed 1%, giving back some of its gains from the previous session. A day earlier, JPMorgan shares rose after the takeover of embattled regional First Republic Bank. Other large banks including Goldman Sachs, Bank of America and Citigroup also dropped more more than 2.5%.
Elsewhere, fresh numbers from the Job Openings and Labor Turnover Survey for March showed signs of a loosening job market.
Employment openings hit their lowest levels since April 2021. Orders for manufactured goods in March grew 0.9%, falling below expectations of a 1.3% increase
Earnings season also continues this week, with Apple scheduled to announce its quarterly performance on Thursday.
Prices for the 10-year Treasury shot up, lowering yields to 3.43% from Monday’s 3.58%. Treasury prices and yields move in opposite directions.
Oil prices skidded $3.49 to $72.17 U.S. a barrel.
Gold prices regained $31.20 to $2,023.40U.S. an ounce.