Futures tumbled sharply Tuesday following the Labor Day weekend amid fears over global growth.
European shares tumbled, led by banks as rising debt yields continued to spook investors.
Italy is at the center of the euro zone attention, with doubts on whether the government can deliver a promised austerity package and trade unions threatening strikes as parliament debates the austerity measures.
Meanwhile, the Swiss National Bank decided to set a minimum exchange rate of 1.20 francs to one euro, in an attempt to curb the appreciation of the franc, which is hurting the nation's exports. The euro and the dollar soared against the Swiss francon the decision.
Among U.S. banks, financials that were in talks with prosecutors over settling claims of "robosigning" have been offered a deal, according to the Financial Times.
The FT said the proposed settlement language also might release the financial institutions, which include Bank of America , JPMorgan Chase , Wells Fargo and Citigroup , from legal liability for wrongful securitization practices.
Nomura cut its price targets on a number of banks including BofA, Citigroup, JPMorgan and Goldman Sachs. In addition, Credit Suisse cut its estimates for Goldman Sachs and Morgan Stanley.