U.S Stocks Plummet Amid Euro Debt Fears

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U.S. Stocks dropped, causing the S&P 500 Index to experience its greatest drop all year. This due in part to fewer than expected U.S factory orders and fears that the European debt crisis may worsen.

Wal-Mart Stores Inc. lost 1.3 percent after JPMorgan Chase & Co. cut its credit rating. Herbalife Ltd. Also fell 2.7 percent with the news that it is currently under investigation by the Federal Trade Commission.

The S&P 500 dropped 1 percent to 1,497.96 having only just recorded a five year high the previous week. The Dow Jones Industrial Average receded 124.58 points to 0.9 percent.

Spanish 10-year government yields leaped a total of 23 basis points to 5.44 percent. Similarly, yields on Italian debt also rose 14 basis points reaching 4.47 percent.

The Stoxx Europe 600 Index also dropped today, losing 1.5 percent. Deutsche Bank AG released a statement to the effect that this year’s increased interest in both Italian and Spanish bonds may not hold with Silvio Berlusconi closing in on the lead for this month’s elections.

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