Tech stocks fell on news that chipmaker Intel, a bellwether for tech stocks, cut its profit outlook. Moody's says it plans to review EU sovereign debt ratings, adding to the general market gloom.
In 2011, stocks were the most correlated they'd been in 80 years, which meant investors could skip out on doing intense stock-specific research and just focus on getting the market right. Investment moves were dominated by European headlines as well.
The nations of the European Union have agreed to submit to tighter oversight of fiscal policies as many struggle with severe debt that could kill the euro and cause a new global recession.
German Chancellor Angela Merkel has opposed many of the moves to stabilize the eurozone that her European colleagues favor. Is she the steady hand Europe needs now, or does she lack political courage?
A look at four central players in the eurozone crisis, and what they want.
US stocks on the Dow dropped 198 points to close at 11997 after the head of the European Central Bank said there was no plan for purchases of European government bonds. The drop in US stocks was the worst since November.
European Central Bank cuts interest rates but says it has no plan for large-scale purchases of European government bonds. Shares on Wall Street fall in early trading.
The Dow rose 78 points to close at 12097 after a threat to Germany's credit rating mostly erased an early morning rally
French President Nicolas Sarkozy said after a meeting with German Chancellor Angela Merkel that they would prefer a treaty agreed by all 27 members of the European Union but would also accept a treaty among just the 17 countries that use the euro.
Europe debt crisis solution would be joint-issued euro bonds. Germany denies reports that it has initial plans to solve Europe debt crisis with euro bonds issued by nations with triple A credit.