The blue-chip Dow Jones Industrial Average slumped 153.72 points (1.43%) to 10,629.23 after surrendering more than 100 points a day earlier.
The tech-rich Nasdaq composite lost 51.42 points (2.15%) at 2,342.94 while the broad-market Standard & Poor's 500 index shed 20.13 points (1.74%) to 1,137.31.
Wall Street opened on a bearish note as markets elsewhere were slammed by fresh eurozone crisis concerns that also sent gold soaring to new record peaks.
The European single currency nosedived to an 18-month low amid the prospect of eurozone austerity cuts that could derail fragile economic recovery.
US stocks were under pressure "as festering fears regarding the euro-area's debt crisis and the impact of measures being implemented to try to restore sustainable fiscal policy on the global recovery are lassoing the bulls," analysts at Charles Schwab & Co said in a client note.
The concerns toward Europe were more than offsetting data showing a larger-than-expected increase in US retail sales in April, the analysts said.
US retail sales rose for the seventh straight month -- up 0.4% and slightly higher than the 0.2% expected by most analysts, according to data
