NEW YORK — Stock indexes dove Friday on heightened worry about Greece’s debt crisis, pushing the dollar to a six-month high against the euro and 10-year bond yields to a record low.
The distress came along with news that the European Central Bank’s top economist had quit and reports that Germany was preparing to safeguard its banks against a possible Greek default.
“The perception is the ECB is not on the same page, that it doesn’t have a clear vision of how to stimulate the economy,” said Brad Sorensen, director of market and sector analysis at Charles Schwab.
Tallying its sixth straight triple-digit move, and its worst day in more than three weeks, the Dow Jones industrial average lost 303.68 points, or 2.7 percent, to close at 10,992.13, down 2.2 percent from the week-ago close.
All of the blue chips’ 30 components lost ground, including McDonald’s, which fell 4 percent after the burger chain reported a less-than-anticipated increase in global sales for August.
Also weighing on the Dow, Bank of America shares shed 3.1 percent on a Wall Street Journal report that executives have discussed cutting about 40,000 jobs in an initial restructuring wave.
The “disappointing results from McDonald’s didn’t help matters, and more jobs cuts from Bank of America — add those things up and you get some pressure,” Sorensen said.
Down 1.7 percent for the week, the Standard & Poor’s 500 declined 31.67 points, or 2.7 percent, to 1,154.23. The Nasdaq composite shed 61.15 points, or 2.4 percent, to 2,467.99.
As equities were hammered, the U.S. dollar rose to a six-month high against the euro while the 10-year Treasury yield used in determining rates on consumer loans including mortgages fell to a record.
The ECB said Juergen Stark, a proponent of higher interest rates, would step down from its executive board by the end of the year, signaling a possible dispute among policymakers over how to combat the regional debt crisis.
Sorensen said Europe is the dominant story for Wall Street and behind the ongoing volatility.
