NEW YORK — Political uncertainty in debt-hobbled Europe spread to financial markets Tuesday and pushed stocks lower in Europe and the United States.
The Dow Jones industrial average was down almost 200 points at its low point for the day before recovering most of its loss to finish down 76.44. It was the average’s fifth straight decline.
European indexes closed near their lowest levels in months, and the euro neared a five-month low against the dollar.
Prices plummeted for commodities such as oil and copper that depend on the health of the world economy. The turmoil in Europe added to concerns about slower growth in China and weaker job creation in the U.S.
Trading throughout the markets is growing more volatile as Europe’s debt crisis “accelerates to a point where it’s not really controllable with the sorts of Band-Aids they’ve used,” said Daniel Alpert, managing partner at investment bank Westwood Capital Partners.
In Greece on Tuesday, the left-wing politician struggling to form a new government declared that the country was no longer bound by its promises to cut spending sharply in exchange for international bailout loans. Alexis Tsipras also demanded a moratorium on repaying the part of Greece’s debt that is “onerous.” The main stock index in Greece closed down 3.6 percent after a 7 percent decline the day before.
Greek voters on Sunday rejected parties that had imposed the spending cuts demanded by Greece’s bailout lenders. Cuts to pensions and social programs are deepening Greece’s recession.
A flurry of late-day buying helped the indexes recover from their earlier lows. The Dow closed down 0.6 percent at 12,932.09. The Standard & Poor’s 500 index fell 5.86, or 0.4 percent, to 1,363.72. The Nasdaq composite index fell 11.49, or 0.4 percent, to 2,946.27.
Markets have been buffeted for three years by shifting perceptions about the European debt crisis. At times, many feared a messy string of defaults would set off a global credit crunch.
