Stocks suffer worst loss in month; Dow off 125
Wednesday, April 4, 2012
NEW YORK (AP) — European debt flared again as a worry for Wall Street and drove stocks Wednesday to their worst loss in a month. The Dow Jones industrial average lost 125 points, and the price of gold plunged to its lowest level since January.
It was only the second time this year the Dow has recorded a triple-digit decline. The average gained 8 percent from January through March, its best first quarter since 1998, but has lost 1 percent already in April.
The Dow was down as much as 179 points earlier in the day. It recovered to close down 124.80 at 13,074.75. Only four of the 30 stocks that make up the average rose for the day.
A disappointing auction of government debt in Spain signaled that investor confidence in that country’s finances is weakening. Spain announced tax increases and budget cuts last week, which could hurt its economy further.
Bond yields in Spain shot higher, making it more expensive for the country to raise money. Benchmark stock indexes fell 2.8 percent in Germany, 2.7 percent in France and 2.3 percent in Britain.
Investors had scarcely stopped worrying about the fate of Greece when Spain took its place as the flashpoint of the debt crisis that has hobbled Europe for more than two years.
“It’s like when cockroaches appear: You’re never quite sure how many are out there,” said John Manley, chief equity strategist for Wells Fargo Advantage Funds.
In the U.S., the Standard & Poor’s 500 index finished down 14.42 at 1,398.96. The technology-heavy Nasdaq composite index fell 45.48 to 3,068.09, its worst decline of the year and the sixth loss in seven days.