"There's no confidence among investors and it shows, because you get one up day and then you give it back again over the next couple," said Robert Froehlich, chief investment strategist for Deutsche Asset Management. "Two years ago, everywhere you looked there was a reason to invest. Today, everywhere you look there is a reason not to invest."

The Dow Jones industrial average closed down 129.80, or

1.4 percent, at 9,431.77, according to preliminary calculations, its lowest close since Nov. 2, when the average stood at 9,323.54. It was the average's fourth triple-digit loss in eight sessions. The Dow has fallen 274.35 points over the last two days.

The Nasdaq composite index lost 32.08, or 2.1 percent, to 1,464.75. The index last finished lower on Sept. 27, when it was 1,460.71.