NEW YORK (AP) — The stock market has extended its slide after investors couldn't shake their concerns about European countries' big debt loads.
A drop in the euro and a rise in the dollar has rammed markets around the world again Wednesday. Investors are concerned that a $144 billion aid package for Greece won't be adequate to keep debt problems in Europe from spreading.
At the close, the Dow Jones industrials are down 60 at 10,867. The Dow had been down 112 earlier in the day. Its two-day loss totals 285 points.
The Standard & Poor's 500 index is down 8 at 1,166. The Nasdaq composite index is down 22 at 2,402.
Four stocks fell for every one that rose on the New York Stock Exchange. Volume totaled 1.5 billion compared with 1.5 billion Tuesday.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — The stock market resumed its slide Wednesday after investors couldn't shake their concerns about European countries' big debt loads.
The drop came after the market had cut its losses. The Dow Jones industrial average fell about 75 points in late afternoon trading after rising 20 points at midday. On Tuesday the Dow fell 225 points for its biggest drop in three months.
Treasury prices rose and pushed down interest rates in the bond market for a second day.
A drop in the euro against the dollar continued to ram markets around the world. The stronger dollar hurts U.S. stocks by cutting into profits of U.S. companies that do business abroad. A higher dollar also hurts commodity prices by reducing demand from foreign buyers.
Investors are concerned that a $144 billion aid package for Greece won't be adequate to keep debt problems in Europe from spreading. There were also questions about whether the bailout would amount to more than a short-term fix for Greece, which has the smallest economy in the European Union.
German Chancellor Angela Merkel on Wednesday encouraged lawmakers in Berlin to rush the approval of Germany's $29.3 billion share of the Greek rescue program by Friday. Analysts say delays could bring more upheaval to global markets.
Investors fear that if a tourniquet for Greece's financial problems doesn't hold, it would be harder to help larger countries like Spain and Portugal that also face big deficits. Moody's Investors Service warned on Wednesday that it could cut Portugal's credit rating two notches in the next three months.
Adam Gould, senior portfolio manager at Direxion Funds in New York, said the lack of clarity about what will happen in Europe is keeping investors from wanting to buy dips in the market the way they have for most of the market's 14-month recovery.
"This is really a story that has the market spooked," he said. "First it was Greece. Now it's Spain and Portugal."
Fixing Greece's financial problems won't be easy. Riots erupted in Athens on Wednesday over tax hikes and government spending cuts that the International Monetary Fund and other European nations are requiring as part of the bailout. Tens of thousands of people took to the streets and three people were killed in the protests.
The problems of heavy government debts are a big test for the euro. Sixteen countries use the common currency. The euro fell against the dollar, hitting its lowest level in 14 months in morning trading.
Swings in global stock markets have intensified in the past week. Wednesday was the sixth time in seven days the Dow moved by more than 100 points. Investors have questions about Greece but they're also awaiting the government's April jobs report on Friday and monitoring Washington's overhaul of the rules that govern financial companies.
In the final hour of trading, the Dow fell 74.22, or 0.7 percent, to 10,852.55. It had been down nearly 112 points.
The broader Standard & Poor's 500 index fell 9.42, or 0.8 percent, to 1,164.18, while the Nasdaq composite index fell 24.14, or 1 percent, to 2,400.11.
Bond prices rose. The yield on the benchmark 10-year Treasury note fell to 3.55 percent from 3.60 percent late Tuesday.
Gold rose. Crude oil fell $2.77 to $79.97 per barrel on the New York Mercantile Exchange.
Kevin Mahn, chief investment officer at Hennion & Walsh in Parsippany, N.J., said the debt problems are severe but not new. He said investors had been looking for an excuse to sell stocks after the market's steep 14-month climb. Mahn expects the big back-and-forth moves will continue.
"I think it's going to be more of an extended pause than a correction," Mahn said.
Investors looking for continued signs of a domestic recovery received another encouraging sign on employment Wednesday. Payroll company ADP said private employers added 32,000 jobs last month. That was slightly above expectations.
The ADP report is seen an early indicator of the government's closely watched monthly employment report, though there are often wide variations because the ADP only accounts for private-sector jobs.
The Labor Department is expected to report on Friday that the unemployment rate was unchanged at 9.7 percent last month while employers added 200,000 jobs. Unemployment is considered the main obstacle to a sustained recovery of the U.S. economy.
A trade group said that services industries expanded in April at a slower pace than economists expected. The Institute for Supply Management said its service sector index was unchanged at 55.4 in April from March. Analysts expected an increase. Still, a reading above 50 indicates growth.
About four stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.1 billion shares, compared with 1.1 billion at the same point Tuesday.
The Russell 2000 index of smaller companies fell 10.43, or 1.5 percent, to 699.27.
Britain's FTSE 100 fell 1.3 percent, Germany's DAX index dropped 0.8 percent, and France's CAC-40 fell 1.4 percent. In Greece, the main stock index fell 3.9 percent. Portugal's PSI 20 lost 1.5 percent and Spain's main index fell 2.2 percent.
