Publications
Partners
New York - New worries over a eurozone meltdown sent US stocks plummeting more than 3% on Wednesday.
US markets followed their European counterparts sharply lower amid rumors over the strength of the 17-member eurozone after Italian debt yields jumped as high as 7.4%, the level at which other troubled eurozone countries sought rescues.
At the closing bell the Dow Jones Industrial Average was down 387.95 points at 11 782.23.
The more broad-based S&P 500 lost 46.74 to 1 229.18, while the tech-heavy Nasdaq Composite dropped 105.84 points to 2 621.65.
"The major averages remain under pressure as soaring yields of Italian debt sparked concerns Europe's debt crisis is getting worse," said Scott Marcouiller of Wells Fargo Advisors.
The markets fall hit all sectors, with all 30 Dow blue chips losing ground.
Banks feared to have risky European exposure were hit the hardest: Goldman Sachs sank 8.2%, Citigroup fell 8.2%, Morgan Stanley 9.0% and JPMorgan Chase 7.1%.
General Motors shares gave up 10.9% after it reported a 5.9% fall in third quarter income and forecast a flat fourth quarter, in part due to the turmoil in the eurozone.
Yahoo's shares jumped 3.3% at mid-session on reports that Softbank and Alibaba had approached private equity groups about making a hostile bid for the whole company.
But in the absence of any confirmation or denial, gravity pulled the shares back down and Yahoo closed off 0.3% at $15.92.
Shares in Adobe lost 7.7% after the software company cut its fourth quarter forecast and said it was pulling the plug on its Flash player for mobile browsers, which Apple's late chief Steve Jobs refused to allow on the iPhone and iPad.
The company also said it would lay off 750 US and Europe staff.
US bond prices jumped as buyers fled eurozone paper. The yield on the 10-year Treasury dropped to 1.96% from 2.07% Tuesday, while that on the 30-year Treasury moved to 3.02% from 3.12%.
Bond yields and prices move in opposite directions.
