Investing.com - U.S. stock markets tumbled after the open on Wednesday, as investors moved out of riskier assets after a sharp spike in Italian borrowing costs fuelled concerns that the euro zone’s debt crisis is worsening.
During early U.S. trade, the Dow Jones Industrial Average tumbled 2.25%, the S&P 500 index plunged 2.35%, while the Nasdaq Composite index sank 2.2%.
Concerns over Italy’s debt woes intensified after the yield on Italian 10-year government bonds soared to a euro-lifetime high of 7.48% earlier, above the 7% level which prompted Greece, Ireland, and Portugal to seek international bailouts.
Spanish government debt came under selling pressure as well, with the 10-year yield rising to 5.87%, the highest level since early August.
Shares in the financial sector performed poorly, tracking sharp losses in their European counterparts. Bank of America saw shares drop 3.4%, Citigroup shares sank 4.6%, while U.S.-listed shares of Italy’s second largest lender Intesa Sanpaolo plunged 10.5%.
Wall Street investment banks Morgan Stanley and Goldman Sachs, both of which have significant exposure to Italian sovereign debt, tumbled 6.8% and 4.9% respectively.
Meanwhile, in earnings news, the largest U.S. automaker General Motors saw shares dive 9.6% after reporting a 15% drop in third quarter earnings.
The largest U.S. dairy processor Dean Foods slumped 4.5% after saying that it swung to a third quarter loss, as a large impairment charge and lower milk volume sales weighed.
Shares in software maker Adobe plummeted 10.9% after announcing that it would cut 750 jobs, mainly in North America and Europe, as part of a restructuring plan. As a result, the company revised down its quarterly earnings forecast.
Clothing retailer Polo Ralph Lauren saw shares fall 6% as rising cotton prices weighed on quarterly earnings.
On the upside, BestBuy shares rose 2.25% after the electronics retailer said it would join the list of stores opening at midnight after Thanksgiving Day in what retailers are calling "Black Midnight."
Across the Atlantic, European stock markets were down sharply, with Italian lenders leading losses. The EURO STOXX 50 tumbled 2.85%, France’s CAC 40 dropped 2.6%, Germany's DAX sank 2.45%, while Britain's FTSE 100 fell 2.2%.
Earlier Wednesday, government data showed that Chinese consumer price inflation moderated to 5.5% from 6.1% the previous month, easing fears over monetary tightening by Beijing.
During early U.S. trade, the Dow Jones Industrial Average tumbled 2.25%, the S&P 500 index plunged 2.35%, while the Nasdaq Composite index sank 2.2%.
Concerns over Italy’s debt woes intensified after the yield on Italian 10-year government bonds soared to a euro-lifetime high of 7.48% earlier, above the 7% level which prompted Greece, Ireland, and Portugal to seek international bailouts.
Spanish government debt came under selling pressure as well, with the 10-year yield rising to 5.87%, the highest level since early August.
Shares in the financial sector performed poorly, tracking sharp losses in their European counterparts. Bank of America saw shares drop 3.4%, Citigroup shares sank 4.6%, while U.S.-listed shares of Italy’s second largest lender Intesa Sanpaolo plunged 10.5%.
Wall Street investment banks Morgan Stanley and Goldman Sachs, both of which have significant exposure to Italian sovereign debt, tumbled 6.8% and 4.9% respectively.
Meanwhile, in earnings news, the largest U.S. automaker General Motors saw shares dive 9.6% after reporting a 15% drop in third quarter earnings.
The largest U.S. dairy processor Dean Foods slumped 4.5% after saying that it swung to a third quarter loss, as a large impairment charge and lower milk volume sales weighed.
Shares in software maker Adobe plummeted 10.9% after announcing that it would cut 750 jobs, mainly in North America and Europe, as part of a restructuring plan. As a result, the company revised down its quarterly earnings forecast.
Clothing retailer Polo Ralph Lauren saw shares fall 6% as rising cotton prices weighed on quarterly earnings.
On the upside, BestBuy shares rose 2.25% after the electronics retailer said it would join the list of stores opening at midnight after Thanksgiving Day in what retailers are calling "Black Midnight."
Across the Atlantic, European stock markets were down sharply, with Italian lenders leading losses. The EURO STOXX 50 tumbled 2.85%, France’s CAC 40 dropped 2.6%, Germany's DAX sank 2.45%, while Britain's FTSE 100 fell 2.2%.
Earlier Wednesday, government data showed that Chinese consumer price inflation moderated to 5.5% from 6.1% the previous month, easing fears over monetary tightening by Beijing.