(NEW YORK) — Growing fears that Spain will need to be bailed out hit markets hard Monday, sending global stocks sharply lower and the euro down to a fresh two-year low against the dollar.
The Dow lost 101 points Monday to close at 12,721. The Nasdaq closed down 35 points, and the S&P lost 12 points.
In Europe stocks took a hit. The Stoxx 600 fell 2.5 percent, while the IBEX 35 of Spain lost 1.1 percent. With the yield on Spain’s benchmark 10-year bond well above seven percent, investors appear to be resigned to the prospect of Spain needing a financial rescue like Greece, Ireland and Portugal.
As for earnings reports, McDonald’s said Monday that its net income slipped 4 percent in the second quarter as a result of unfavorable “currency exchange rates.”
In the energy sector, Halliburton says net income was flat in the second quarter as an increase in international drilling was offset by a slowdown in North America. Still, earnings beat estimates, pushing the company’s stocks up 2.4 percent.
Copyright 2012 ABC News Radio
David Goldman, CNN
Aaron Smith, CNN
Jacqueline Howard, CNN
Stephan Rockefeller, EastIdahoNews.com