The Dow Jones Industrial Average dropped 972 points, or 2.4%. The Nasdaq Composite lost 3.4%, and the S&P 500 slid 2.8%. The blue-chip Dow earlier fell as much as 1200 points.

Fears of a U.S. recession were the main culprit for the global market meltdown after Friday's disappointing July jobs report. Investors are also concerned that the Federal Reserve is behind in cutting interest rates to bolster an economic slowdown, with the central bank choosing instead to keep rates at the highest in two decades last week.