US stocks plummet over 4pc, wipe out Tuesday gains
NEW YORK: US stocks plummeted over four percent Wednesday, more than wiping out the gains of Tuesday's rebound as European debt troubles and worries of a new US recession kept investors nervous.
The Dow Jones Industrial Average was down 519.83 points (4.62 percent) to 10,719.94 at closing, compared to its 430-point gain on Tuesday.
The broader S&P 500 fell 51.77 points (4.42 percent) to 1,120.76, while the tech-heavy Nasdaq lost 101.47 (4.09 percent) to 2,381.05.
The drop came after much steeper falls on European bourses, spurred by worries of possible problems with Greece's new bailout deal and a rumored ratings downgrade of France and/or French banks.
Bank shares led the drop in the US markets, amid speculation that they faced more pressure to stop parking money with the central bank and begin lending.
Copyright AFP (Agence France-Presse), 2011
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