NEW YORK — Major stock indexes fell from their 2010 highs Wednesday as weakness in the housing market and rising European debt loads revived investors’ pessimistic view of the economy.
The Dow Jones industrial average fell about 53 points. It was only the Dow’s second drop in 12 days. Broader stock indexes also slid.
Treasury prices tumbled after a government debt auction drew only modest demand for a second straight day. That raised concerns that the government will have to pay higher interest rates to attract buyers for its debt. Washington has been issuing record amounts of debt to help revive the economy.
The drop in stocks came after Fitch Ratings lowered Portugal’s credit rating. The agency said the country’s recovery will be slower than others that use the euro. Fitch contends that could hurt Portugal’s ability to repay its debt.
Deficit problems in Europe have been one of the few drags on stocks this year. Rising debt in Greece, Portugal and other nations that use the euro have investors worried that troubles there could upend a nascent global recovery.
The dollar rose to a 10-month high against the euro. The stronger dollar makes commodities more expensive to foreign buyers. That cuts into demand.
Stocks have been carving steady gains for more than a month as reports signal a slow strengthening of the economy.
The Dow fell 52.68, or 0.5 percent, to 10,836.15, a day after closing at its highest level since September 2008. It was the biggest point and percentage drop since Feb. 25.
The Standard & Poor’s 500 index dropped 6.45, or 0.6 percent, to 1,167.72. The index also closed Tuesday at its highest level in nearly 18 months.
The Nasdaq composite index fell 16.48, or 0.7 percent, to 2,398.76. On Tuesday, the index reached its best level in 19 months. Bond prices dropped after an auction of $42 billion in five-year Treasury notes drew weak demand.
