Wall Street suffered through another brutal selloff Monday, with investors heading for the exits ahead of Thanksgiving as both the U.S. and Europe struggled to deal with their burgeoning debt crises.Major indices plunged more than 2 percent, with financials and energy leading the way lower in the holiday-shortened trading week. Each of the Standard & Poor's 500 10 sectors fell by more than 1 percent.

Economic bellwether Caterpillar [CAT  90.81    -3.12  (-3.32%)   ] along with Hewlett-Packard [HPQ  26.96    -1.03  (-3.68%)   ], which reports earnings after the closing bell, led losers on the Dow industrials. The bluechip index again turned negative for the year.

The Nasdaq tech barometer performed worst as online retail giant Amazon [AMZN  188.08    -9.06  (-4.6%)   ] fell about 5 percent while Intel [INTC  23.61    -0.68  (-2.8%)   ] lost more than 3 percent.

There was more bad news form techland as well — Research in Motion [RIMM  17.43    -0.76  (-4.18%)   ] shares tumbled after Credit Suisse slashed its price target for the Blackberry maker from $30 to $20.

The market took little solace from the day's only major piece of economic news — a reading that saw existing home sales rise 1.4 percent, better than expectations.