Stocks sink; Banks rise on BofA deal
The Dow lost 171 points, the S&P 500 closed down 18, and the Nasdaq fell 48, ending a three-day streak of gains
Tribal members in Native American dress visit the trading floor of the New York Stock Exchange Thursday, Aug. 25, 2011, during ceremonies celebrating NativeOne, becoming the exchange’s first Native American-owned member.
Richard Drew/AP
NEW YORK
A three-day rally is ending much like it began, with a steep and sudden turn.
Stocks started higher early Thursday but turned lower within 20 minutes. Indexes in the U.S. and Europe sank after Germany's main stock index suddenly lost 4 percent. Traders were at a loss to explain the move.
Bank of America Corp. led other banks higher on news that Warren Buffett will invest $5 billion in the bank.
The Dow fell 171 points, or 1.5 percent, to close at 11,150. The S&P 500 index fell 18 points, or 1.6 percent, to 1,159. The Nasdaq fell 48 points, or 2 percent, to 2,420.
More than three stocks fell for every one that rose on the New York Stock Exchange. Trading volume was above average at 5 billion shares.