Overseas stock and commodity markets fell steeply. European shares lost 2.6 percent, led by euro zone banking stocks, a trend the United States followed as shares of Morgan Stanley fell 2.3 percent to $12.50. "It was a wipeout in the overseas markets," Brian Battle, director of trading at Performance Trust Capital Partners in Chicago told Reuters. "We are going to echo that as confidence gets sucked out. The problem is bigger and more intractable than what happened in (the financial crisis) in '08…You could lose 40 points on the S&P today."