TRIGGER-HAPPY investors dumped US stocks yesterday, scared by the market’s sudden fall through a key technical level brought on by more worries about Europe’s debt troubles.
The S&P 500 steadily slipped through the morning until it broke through 1,225, when selling picked up in both the futures and cash markets.
Investors have been increasingly focused on Europe, and markets were cautious early as bond yields in Spain and Italy rose to levels viewed as unsustainable.
Some market sources cited squabbling between Democrats and Republicans on the congressional super-committee formed to find ways to cut the US debt.
The Dow Jones industrial average fell 134.71 points, or 1.13 per cent, to 11,770.88. The S&P 500 lost 20.73 points, or 1.68 per cent, to 1,216.18. The Nasdaq Composite dropped 51.62 points, or 1.96 percent, to 2,587.99.
About 8.6bn shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, above the current daily volume average of just above 8bn shares.