New York. The stock market fell Monday after a jump in Italy's borrowing costs reminded investors of how much work remains to be done to contain Europe's debt problems.
The Dow Jones industrial average lost nearly 75 points. Bank stocks fell the most.
European markets also fell, and the euro weakened against the dollar.
Major indexes closed higher last week as Greece and Italy moved to form new governments and took other decisive steps to get their debt troubles under control. However, worrisome signs re-emerged Monday.
The Italian government had to pay 6.29 percent at an auction of five-year bonds, the highest rate since 1997. Italy paid a much lower rate of 5.32 percent at a similar auction last month.
That's a sign investors are still concerned about Italy's ability to repay its debts. Stocks tanked Wednesday after key Italian borrowing rates jumped above 7 percent, a level widely seen as unsustainable.
Also, Italy's biggest bank, Unicredit, reported a $14.4 billion loss.
The Dow fell 74.70 points, or 0.6 percent, to close at 12,078.98.
The Standard & Poor's 500 index fell 12.06 points, or 1 percent, to 1,251.79. The Nasdaq composite index fell 21.53, or 0.8 percent, to 2,657.22.
indystar.com
The Dow Jones industrial average lost nearly 75 points. Bank stocks fell the most.
European markets also fell, and the euro weakened against the dollar.
Major indexes closed higher last week as Greece and Italy moved to form new governments and took other decisive steps to get their debt troubles under control. However, worrisome signs re-emerged Monday.
The Italian government had to pay 6.29 percent at an auction of five-year bonds, the highest rate since 1997. Italy paid a much lower rate of 5.32 percent at a similar auction last month.
That's a sign investors are still concerned about Italy's ability to repay its debts. Stocks tanked Wednesday after key Italian borrowing rates jumped above 7 percent, a level widely seen as unsustainable.
Also, Italy's biggest bank, Unicredit, reported a $14.4 billion loss.
The Dow fell 74.70 points, or 0.6 percent, to close at 12,078.98.
The Standard & Poor's 500 index fell 12.06 points, or 1 percent, to 1,251.79. The Nasdaq composite index fell 21.53, or 0.8 percent, to 2,657.22.
indystar.com
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