(CNBC) U.S. stocks closed sharply lower on Thursday after banking stocks fell, with Deutsche Bank's U.S.-listed shares hit a new all-time low.
The three major indexes hit session lows shortly after Bloomberg reported that approximately 10 hedge funds were reducing their exposure to the embattled European bank. Deutsche's U.S.-listed shares fell 6.73 percent in afternoon trade, and dropped as much as 9.02 percent.
"When you look at what's going on in the Deutsche Bank options, you're seeing a lot of puts being bought," said Daniel Deming, managing director at KKM Financial. "So you're getting some concerns that this could turn into something bigger."
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