Stocks extended losses on Wednesday, with the three major indexes falling more than 1 percent, after ratings agency Moody's reviewed ratings of Portugal's banks for a possible downgrade, adding to fears that Europe's debt problems were worsening.

The Dow Jones industrial average <.DJI> dropped 132.83 points, or 1.10 percent, to 11,943.28. The Standard & Poor's 500 Index <.SPX> dropped 16.02 points, or 1.24 percent, to 1,271.85. The Nasdaq Composite Index <.IXIC> dropped 30.11 points, or 1.12 percent, to 2,648.61.

(Reporting by Edward Krudy; Editing by Jan Paschal)