Concerns that Italy may be headed towards a similar debt crisis as Greece have rattled financial markets in the United States and Europe.

At the New York Stock Exchange, the Dow Jones Industrial Average fell more than three percent on Wednesday while the tech-heavy Nasdaq composite index and the S&P 500 index also saw sharp drops.

Meanwhile in Europe, stock prices in Germany and France slid more than two percent.

Even after Italian Prime Minister Silvio Berlusconi announced his intent to resign Tuesday, investment sentiment rapidly froze after the interest rate on Italian ten-year bonds spiked.

In the event Italy requests a financial bailout, efforts to contain the spread of the financial crisis in Europe with the European Financial Stability Facility are unlikely to be sufficient.