Debt worries drag down the stock market
The Dow closed 95 points down, the S&P 500 lost 11 points, and the Nasdaq fell 25 points, with five stocks falling for every one that rose
Traders Jonathan Corpina, left, and William McInerney work on the floor of the New York Stock Exchange Monday, July 18, 2011. Stocks fell amid worries over European debt troubles and the increasingly urgent debate surrounding the US debt ceiling.
Richard Drew / AP
NEW YORK (AP) — Europe's debt troubles and an impasse over lifting the U.S. government's borrowing limit are dragging down stocks.
The S&P 500 index dropped 11 points, or 0.8 percent, to close at 1,305. The Dow Jones industrial average fell 95 points, 0.8 percent, to 12,385.
The Nasdaq fell 25 points, or 0.9 percent, to 2,765.
The results of stress tests on European banks released last week came under deeper scrutiny. The tests failed to measure how banks would fare if Greece or Italy defaults.
In the U.S., the debt limit debate remains at a standstill. The limit must be raised by Aug. 2 or the government risks a default.
Five stocks fell for every one that rose on the New York Stock Exchange. Volume was slightly below average at 3.7 billion shares.