Trading remained volatile across major markets on Tuesday and Wall Street slumped during afternoon trade as financial stocks plumbed their lowest level since 1997.

The S&P 500 fell 5.7 per cent and closed below 1,000 for the first time in more than five years. The Dow Jones Industrial Average slumped 5.1 per cent to close under 9,500 after breaking 10,000 on Monday.