POSTED AT 11:35AM EST:

U.S. stocks slumped again as investors fretted over continued worries among European banks as well as the Federal Reserve’s gloomy outlook and hints at further actions.

The Dow Jones Industrial Average shed 456 points, or 4.1%, to 10784, while the Standard & Poor’s 500-stock index slid 41 points, or 3.5%, to 1132 and the Nasdaq Composite lost 79 points, or 3.2%, to 2403.

All 30 of the Dow components and all 10 of the S&P 500 sectors were in negative territory, with just a handful of S&P 500 components in positive territory. In a reflection of investor concern, the CBOE Market Volatility Index, the “fear gauge” known as the VIX, surged 23%.

Leading the declines were financial stocks, with Citigroup falling 10%, Bank of America off 9.6%, J.P. Morgan Chase down 5.4% and American Express shedding 4.9%. Walt Disney was the steepest decliner among the Dow components, tumbling 11% after the blue-chip media and entertainment conglomerate reported results that topped analyst expectations, but raised analyst concerns about decelerating advertising rate growth.

READ MORE: WSJ