U.S. stocks slumped on Tuesday, with the Nasdaq falling more than 3 percent, as fears grew that a financial rescue package for Greece might not be enough to prevent a sovereign debt crisis from spreading.

A drop in semiconductor stocks also pushed the Nasdaq index down as the PHLX semiconductor index <.SOXX> fell 4.8 percent.

The Dow Jones industrial average <.DJI> dropped 248.19 points, or 2.23 percent, to 10,903.64. The Standard & Poor's 500 Index <.SPX> lost 29.76 points, or 2.48 percent, to 1,172.50. The Nasdaq Composite Index <.IXIC> fell 80.51 points, or 3.22 percent, to 2,418.23.

(Reporting by Chuck Mikolajczak)