Technology companies also fell.
ITALY: Investors dumped Italian government bonds, driving borrowing costs sharply higher for that country and rekindling fears of more financial strain for Europe's third-largest economy.
Italy has searched for a new government since inconclusive elections in March, and investors fear voters will choose leaders hoping to break with the continent's austere fiscal policy approach and even the multinational euro currency that replaced the lira in 2002.
The Dow Jones Industrial Average fell 391.64 points, or 1.58 percent, to 24,361.45, the S&P 500 lost 31.47 points, or 1.16 percent, to 2,689.86 and the Nasdaq Composite dropped 37.26 points, or 0.5 percent, to 7,396.59.
Oha Suta to Reveal Big Pokémon News on May 31, 2018
More information regarding Pokemon Let's Go Pikachu and Pokemon Let's Go Eevee will be announced at E3 2018. In that spirit, the games have a lot in common with Pokemon Go-and even connect to it directly.
Safe-haven U.S. Treasury bonds and German bunds rallied, as did the Japanese yen, the U.S. dollar and gold.
"The risk to the euro is predominantly political in the near term", Alvin Tan, a currency strategist at Societe Generale, said, adding the euro would likely stay capped at $1.15 or $1.16 until the Italian political crisis was resolved.
CURRENCIES: New jitters about the stability of the euro sent the currency's value against the dollar to its lowest level in nearly a year.
Reflecting the move to safer assets, the yield on USA government bonds fell to 2.78 percent, the lowest percentage since the beginning of April, from 2.93 percent.
Devastating flash flood rips through historic Maryland town
Rescue personnel examine damage on Main Street after a flash flood rushed through the historic town of Ellicott City, Maryland . Ellicott City saw the worst of the flooding, and dozens of cars parked in the town were washed away in the torrent.
ANALYST'S VIEWPOINT: "Worries over geopolitics look set to hit Asia after sweeping through Europe and also the U.S.at the start of the week". MSCI's broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS closed 0.9 percent lower. The yield on the 10-year Treasury fell to 2.78 per cent, its lowest since early April, from 2.93 per cent.
A top North Korean official was headed to NY on Tuesday for talks with U.S. Secretary of State Mike Pompeo, the latest indication that the summit between President Donald Trump and North Korean leader Kim Jong Un may go ahead next month.
A steep drop in US bond yields, which drives interest rates lower on loans, weighed heavily on banks.
"It's evolving into not the greatest environment for bank stocks", said Tim Ghriskey, chief investment strategist at Inverness Counsel in NY. Brent crude, used to price worldwide oils, shed 38 cents to $75.11 a barrel in London.
Boston Celtics fall in Game 7 of the ECF 87-79
Despite all the talent, the Warriors still needed seven games to defeat the top-seeded Rockets in the Western Conference finals. Our backs against the wall, not having home-court advantage, needing to win two games to keep ourselves alive.