U.S. stocks skidded on Wall Street Monday as financial troubles in Europe undercut investor confidence.
Stock indexes fell in Asia and Europe as benchmark 10-year Spanish bonds topped 7.5 percent Monday after the country's parliament passed a massive spending cut bill on Friday that included raising the sales tax to 21 percent. The news could mean that Spain will need more international aid above and beyond the $122 billion international bailout set up for Spanish banks.
The so-called troika -- the European Commission, the European Central Bank and the International Monetary Fund -- is sending an auditing team to Athens to ensure Greece is in compliance with terms of its aid package. The ECB last week said it would not lend money to Greek banks until the audit was complete.
In afternoon trading on Wall Street, the Dow Jones industrial average lost 124.16 points or 0.97 percent to 12,698.41. The Standard & Poor's 500 index lost 14.45 points or 1.06 percent to 1,348.21. Tech-heavy Nasdaq composite index gave up 38.95 points or 1.33 percent to 2,886.35.
The benchmark 10-year treasury note gained 6/32 to yield 1.441 percent.
The euro fell to $1.2127 from Friday's $1.2158. Against the yen, the dollar fell to 78.45 yen from 78.48 yen.
In Tokyo, the Nikkei 225 index lost 1.86 percent, 161.55, to 8,508.32.
In London, the FTSE 100 index fell 2.09 percent, 117.90, to 5,533.87.
Most Popular Stories
- Facebook, Twitter Announce Apps for Google Glass
- Will Yahoo Splurge on $1-Billion acquisition of Tumblr?
- European Car Sales up First Time in 20 Months
- 'Star Trek Into Darkness': The Return of Khan?
- Google Fiber Making an Impact
- Entrepreneurs Chase Social Media
- Exciting Night for UFC Fans
- Teen Drivers Should Be Prepared for Any Car-Related Situation
- Summer Movies Aimed at Young Men, Teen Boys
- Financial Times Twitter, Email Hacked