Dow Drops Almost 400 Points on Italy's Debt Crisis

The stock markets took a major beating today with fears of Italy's debt crisis on the minds of investors. The Dow Jones Industrial dropped 394 points while the NASDAQ shed 105 points.

With the sovereign debt crisis sweeping the euro zone like a plague, Italy is its latest victim. The risk to the global financial system has increased. As one of the biggest economies in Europe, Italy's debt problems threatens to push the region into a recession.

Italy's debt is an estimated $2.6 trillion or roughly 120% of its GDP.