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Market Recap: QE3 Honeymoon Officially Over, Markets Go Back to Worrying About EU Crisis

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Markets closed down today:

▼ Dow: -0.15 percent

▼ Nasdaq: -0.60 percent

▼ S&P: -0.22 percent

Precious metals:

▼ Gold: -0.53 percent to $1,765.05 an ounce

▼ Silver: -1.64 percent to settle at $34.00

Commodities:

▼ Oil: -1.16 percent

Market closed down because:

U.S. stocks nosedived Monday as fears about Europe overshadowed recent excitement about central banks' efforts to boost the market.

Stocks opened lower, recovered by mid-afternoon to nearly flat, and closed down.

An index of business confidence in Germany, the biggest economy in Europe, fell for a fifth straight month. Many economists had expected it to at least remain flat. Some think Germany is headed for a recession.

The threat of the years-old European debt crisis has seemed less immediate in recent weeks as central banks unveiled measures aimed at encouraging investment and boosting the global economy. The German report reignited those fears.

Stocks had risen strongly in recent weeks as traders anticipated, then received, help from the Federal Reserve in the form of an open-ended bond-buying program. The Fed will buy $40 billion of mortgage bonds per month until the economy has improved.

The Dow Jones industrial average closed down 20.55 points, or 0.2 percent, at 13,558.92. The Standard & Poor's 500 index declined 3.26, or 0.2 percent, to 1,459.89. Its two strongest groups were utilities and telecommunications, safer stocks that tend to do well in a weaker economy.

The Nasdaq composite index dropped 19.18 points, or 0.6 percent, to 3,160.78. The Nasdaq is heavy in technology shares, which were dragged lower by Apple.

As in the U.S., the concern in Germany is that an economy on the rebound will be weighed down by the rest of the European countries, half of which are already in recession.

Germany's economy grew 0.3 percent in the second quarter from the previous quarter, but a number of economists now believe the country will fall into a recession in the second half of the year.

Apple fell after sales of the new iPhone 5 missed analysts' targets. The company sold 5 million units in three days. Its stock fell $9.31, or 1.3 percent, to $690.79.

The price of oil fell to around $92 a barrel, dragged down by concerns about weakening global growth and demand for crude. Benchmark crude fell 96 cents, or 1 percent, to settle at $91.93 per barrel on the New York Mercantile Exchange.

Stronger demand for safe investments pushed the yield on the 10-year Treasury note down to 1.72 percent from 1.75 percent late Friday.

The Associated Press contributed to this report.

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