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Political Turmoil in Italy Shakes Up Global Markets

Dow ends day down 391
By Newser Editors and Wire Services
Posted May 29, 2018 3:22 PM CDT
Trader Gregory Rowe, left, and specialist John McNierney work on the floor of the New York Stock Exchange, Tuesday, May 29, 2018.   (AP Photo/Richard Drew)

(Newser) – Stocks in the US and Europe sank following political turmoil in Italy, which stoked fears of instability in the euro bloc, the AP reports. Investors dumped Italian government bonds Tuesday, driving borrowing costs sharply higher for that country, and shifted money into US bonds. A steep drop in US bond yields, which drives interest rates lower on loans, weighed heavily on banks. JPMorgan Chase fell 4.3%. Technology companies also fell. Safe-play stocks like utilities rose. New worries about the euro sent the currency to its lowest level against the dollar in nearly a year. The S&P 500 index fell 31 points, or 1.2%, to 2,689. The Dow Jones industrial average lost 391 points, or 1.6%, to 24,361. The Nasdaq composite fell 37 points, or 0.5%, to 7,396. (Read more stock market stories.)

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