The latest setback in Greece's financial crisis sent the Standard and Poor's 500 index to its lowest level of the year, putting it on the edge of a new bear market.

European markets slumped, dragging U.S. stocks down along with them, after Greece said it will miss deficit reduction targets it agreed to as part of its bailout deal. The renewed concerns about Europe's debt problems pushed the euro down to $1.32 versus the dollar, a 9-month low.

The Dow Jones industrial average fell 258.08 points, or 2.4 percent, to 10,655.30.

The S&P 500 lost 32.19 points, or 2.9 percent, to 1,099.23.

The Nasdaq composite slid 79.57 points, or 3.3 percent, to 2,335.83.

For the year to date:

The Dow is down 922.21, or 8 percent.

The S&P 500 is down 158.41, or 12.6 percent.

The Nasdaq is down 317.04, or 12 percent.