New York – The Dow Jones industrial average is closing with a loss of 389 points after Italy’s borrowing costs soared and talks collapsed in Greece on forming a new government.
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Interest rates on Italian government debt spiked, evidence that investors are losing faith in the country’s ability to repay its debt.
In Greece, power-sharing talks fell apart between the country’s two main political parties. That raised doubts about whether a default can be avoided.
The Dow sank 3.2 percent to close at 11,781, the biggest drop since Sept. 22.
The S&P 500 lost 47 points, or 3.7 percent, to 1,229.
The Nasdaq slid 106, or 3.9 percent, to 2,622.
Nine stocks fell for every one that rose on the New York Stock Exchange. Trading volume was high at 4.6 billion shares.
The stock market has become a game for shmedriks.