In closing trade the Dow Jones Industrial Average was down 205.64 points (1.73 percent) to 11,707.98.

The broader S&P 500 fell 25.01 (1.99 percent) to 1,229.18, while the tech-heavy Nasdaq Composite gave up 48.55 (2.04 percent) to 2,638.42.

Wells Fargo Advisors analyst Scott Marcouiller cited disappointing earnings and economic data for the selling.

"Also weighing on stocks are concerns Europe's leaders may struggle to come up with a resolution to the region's debt crisis."