NEW YORK — Financial companies dragged stocks lower Monday as already anxious investors grew more uncertain about the U.S. government’s financial-overhaul plan and debt problems in Europe.
The Dow Jones industrial average slid 80 points in the final 15 minutes of trading to end with a loss of almost 127. It was the lowest close for the Dow since February, at 10,066. All major indexes fell more than 1 percent.
Investors are worried about limits that could be placed on U.S. banks in a final version of the financial overhaul bill. A bill that passed the Senate last week is now being reconciled with the House version. The late drop illustrates how jittery traders are in particular about what will happen in Europe.
“People are afraid to go home and say, . . . ‘What’s going to happen overnight in Europe? Is something new going to pop up?’ ” said Joe Saluzzi, co-head of equity trading at Themis Trading.
The Dow fell 126.82, or 1.2 percent, to 10,066.57, its lowest close since Feb. 10. The broader Standard & Poor’s 500 index fell 14.04, or 1.3 percent, to 1,073.65, and the technology-dominated Nasdaq composite index fell 15.49, or 0.7 percent, to 2,213.55.
The rescue of a Spanish bank raised investors’ anxiety about Europe’s economy. Investors can’t shake concerns that there could be more bank bailouts in Europe if a wave of bad debt cascades through financial markets.
The Bank of Spain stepped in to rescue Cajasur after it failed to complete a merger.
The euro fell against the dollar, dropping to $1.236. The 16-nation currency has become a symbol of investors’ concern about the continent’s economy.
Traders have been dumping the euro on fears that massive debts will cause a default by a weaker country in the European Union.
“Right now, the U.S. financial markets are trading very much out of fear and not any fundamentals,” said Guy Le-Bas, chief fixed-income strategist of Janney Montgomery Scott in Philadelphia.
