U.S. stocks tumble on deepening European debt woes

08:46, May 05, 2010      

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U.S. stocks tumbled on Tuesday, with the Dow Jones industrial average plummeting nearly 250 points, as the euro dropped to a one-year low against the U.S. dollar amid deepening concerns over European sovereign debt problems.

Investors were rattled on worries that the 146-billion-dollar debt package for Greece could stall out if the euro zone members don't approve it, dragging the euro down to one-year low against the dollar.

There were also talks in the market that Spain was facing the possibility of another credit downgrade and ready to ask the International Monetary Fund for money.

European debt woes have been weighing on U.S. stock market for months as investors worried the debt crisis in Greece would spread to more nations in Europe and derail the global economic recovery.

The U.S. Dollar Index continued on its uptrend, which is keeping pressure on select commodities this morning. Oil futures for June delivery plunged more than 3.9 percent to trade at 82.87 dollars a barrel in the New York Mercantile Exchange.

The Dow Jones industrial average slumped 244.03, or 2.19 percent, to 10,907.80. The Standard & Poor's 500 index shed 28.97, or 2.41 percent, to 1,173.29 and the Nasdaq was down 78.09, or 3.13 percent, to 2,420.65.



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