The ECB's other German board member, Joerg Asmussen, last month urged France to take "concrete and measurable" steps to bring down its budget deficit.

BBC: France to miss deficit target, President Hollande says

Greece was also in the spotlight, as European Central Bank executive board member Joerg Asmussen said the central bank won't take part in any potential debt restructuring of the debt-laden country.

WSJ: European Markets Rattled

Outside the U.S., the Stoxx Europe 600 finished the day up 1.6%, adding to Monday's 0.3% gain, after European Central Bank official Joerg Asmussen helped lift investor spirits by saying on Monday that the ECB will keep its accommodative monetary policy in place as long as necessary.

WSJ: Stocks Pare Gains