Dow Jones: 11,770.88 (-134.71) Nasdaq: 2,589.32 (-50.29) SP 500: 1,216.18 (-20.73)TRIGGER-HAPPY INVESTORS dumped US stocks yesterday, scared by the markets sudden fall through a key technical level brought on by more worries about Europes debt troubles.
The S&P 500 steadily slipped through the morning until it broke through 1,225, when selling picked up in both the futures and cash markets.
Investors have been increasingly focused on Europe, and markets were cautious early as bond yields in Spain and Italy rose to levels viewed as unsustainable.
Some market sources cited squabbling between Democrats and Republicans on the congressional “supercommittee” formed to find ways to cut the US debt.
The Dow Jones industrial average fell 134.71 points, or 1.13 per cent, to 11,770.88. The S&P 500 lost 20.73 points, or 1.68 per cent, to 1,216.18. The Nasdaq Composite dropped 51.62 points, or 1.96 per cent, to 2,587.99.
Declines in materials and energy shares accelerated with losses of more than 3 per cent in crude futures and copper prices. The SP energy index fell 2.1 percent and the S&P materials index declined 2.9 per cent.
Tech shares also dragged the market lower, with the S&P technology index down 2.2 per cent.
The 10 major S&P 500 sectors closed in the red for the day.
The broad sell-off repeated the pattern seen lately in which stocks are treated as an asset class, with little differentiation between winners and losers.
Earlier, Spanish bond yields hit their highest level since 1997 at a 10-year auction, while a French bond auction also drew high yields. – (Reuters)
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