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Gridlock in Italy Sends Stocks Tumbling

Hemera/Thinkstock(NEW YORK) -- U.S stock markets tumbled as Italians voted for what appears to be political gridlock.  Italy is a key member of the eurozone and political impasse there could reignite the European economic crisis.
 
As results of the Italian election began trickling out, the Dow turned negative, ending the day down 216 points, or 1.6 percent, at 13,784.17.  This is the Dow’s biggest drop so far this year.

The S&P closed at 1,487.85, down 28 points. The Nasdaq Composite was down 46 points at 3,116.25.
 
Italy is working its way through a deep recession and painful austerity measures.  In Monday’s elections Italians seemed to reject austerity, without giving any one party enough votes to form a government.
 
There are automatic budget cuts coming at the end of the week here in the U.S., which could add to the negative impact on markets in coming days.
 
Copyright 2013 ABC News Radio

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