Markets Right Now: Italy gridlock shakes up global markets
NEW YORK (AP) — The latest on developments in financial markets (all times local):
Stocks in the U.S. and Europe sank following political turmoil in Italy, which stoked fears of instability in the euro bloc.
Investors dumped Italian government bonds Tuesday, driving borrowing costs sharply higher for that country, and shifted money into U.S. bonds.
A steep drop in U.S. bond yields, which drives interest rates lower on loans, weighed heavily on banks. JPMorgan Chase fell 4.3 percent.
Technology companies also fell. Safe-play stocks like utilities rose.
New worries about the euro sent the currency to its lowest level against the dollar in nearly a year.
The S&P 500 index fell 31 points, or 1.2 percent, to 2,689.
The Dow Jones industrial average lost 391 points, or 1.6 percent, to 24,361. The Nasdaq composite fell 37 points, or 0.5 percent, to 7,396.
Stocks in the U.S. and Europe are taking sharp losses as political turmoil in Italy upsets global markets.
European markets fell sharply Tuesday, especially in Italy, Greece and Spain, and U.S. stocks also sustained losses.
The upheaval in Italy is likely to lead to new elections that could become a referendum on Italy staying in the euro.
Investors parked money in lower-risk assets like U.S. and German government bonds. Italian stocks and bond prices slumped. The euro fell against the dollar.
Banks and technology companies led the way lower on Wall Street. Safe-play stocks like utilities rose.
The S&P 500 fell 37 points, or 1.4 percent, to 2,683.
The Dow Jones industrials lost 432 points, or 1.8 percent, to 24,323. The Nasdaq fell 66 points, or 0.9 percent, to 7,367.
U.S. stocks are opening lower, following sharp drops in Europe triggered by political uncertainty in Italy.
Banks and technology companies led the way lower on Wall Street in early trading on Tuesday. Bank of America gave up 1.8 percent and Oracle lost 1.2 percent.
Bond prices rose as investors moved money into lower-risk assets. The yield on the 10-year Treasury note fell to 2.87 percent.
Markets fell broadly in Europe after an attempt by populist parties to form a government in Italy failed. That helped send the euro down against the dollar.
The S&P 500 index fell 20 points, or 0.7 percent, to 2,701.
The Dow Jones industrial average lost 206 points, or 0.8 percent, to 24,547. The Nasdaq composite fell 37 points, or 0.5 percent, to 7,398.