Stocks start rising then plunge through day
NEW YORK (AP) — A burst of enthusiasm over a rescue of Spanish banks melted away Monday within hours, and investor anxiety about the troubled finances of Europe grew on both sides of the Atlantic.
On Wall Street, stocks opened sharply higher but sank all day. Selling only accelerated in the last hour of trading, and the Dow Jones industrial average closed down 142 points.
The rescue, announced Saturday, figured to soothe financial markets. Instead, it inflamed them.
Investors are already worried about weaker U.S. job growth and an economic slowdown in Asia. And the next flashpoint in the Europe crisis is just days away — an election in Greece on Sunday that could speed that country's exit from the euro.
In the United States, the broader market drifted lower all day. The Standard & Poor's 500 index ended down 16.73 points at 1,308.93, and the Nasdaq composite index closed down 48.69 points at 2,809.73.
The Dow finished down 142.97, one of its biggest daily declines this year, at 12,411.23. It opened up almost 100 points.