Deutsche Bank's U.S.-listed shares fell 6 percent to a record low of $11.96, and dragged on big Wall Street banks, after a German magazine said Chancellor Angela Merkel has ruled out state assistance for the lender.
The bank said it had no need for German government help with a $14 billion U.S. demand to settle claims it missold mortgage-backed securities.
The S&P financial index dropped 1.02 percent, the most among the 10 S&P 500 sectors that were in the red. Goldman Sachs' 1.6 percent decline made it the top drag on the Dow. JPMorgan (N:JPM) dropped 1.2 percent.