|DANIEL WAGNER, AP Business Writer|
A wave of political uncertainty in
Major U.S. and European indexes sank as newly-elected Greek politicians appeared unable to form a coalition government. The Dow Jones industrial average fell 149 points in midday trading.
"There is no way we will sneak back in again what the Greek people threw out" in the election, said
Greek voters on Sunday rejected parties that imposed deep spending cuts demanded by
Greek voters made that point by electing a slew of splinter parties to parliament, challenging their leaders' ability to form a majority coalition that can govern effectively.
As another round of elections in
Traders dumped risky assets and those seen as benefiting from economic growth. The euro fell below
The selling boosted demand for safe investments such as U.S. Treasurys. That pushed the yield on the 10-year Treasury note down to 1.84 percent from 1.88 percent late Monday.
"You're looking at selling across the board to raise cash," said
The Dow fell 149 points to 12,859 as of
The Standard & Poor's 500 index dropped 17 points to 1,352. The Nasdaq composite average lost 40 to 2,917.
Markets have been buffeted for three years by shifting perceptions about the gravity of the European debt crisis. At times, many feared a messy string of defaults would set off a global credit crunch.
To sooth bond investors and prevent borrowing costs from rising, political leaders in indebted nations agreed to spending cuts that worsened living standards for many of their citizens. They slashed pensions and government jobs, raised retirement ages and eliminated social programs.
International lenders and leaders of
Yet opponents of strict austerity say
French voters on Sunday elected a new president who has spoken out against austerity and promised to cut
On Monday, stocks had recovered from early losses as traders' knee-jerk reactions to the news from
Some corporate news that moved stocks:
_ Burger chain
_ Watchmaker Fossil plunged 37 percent after saying weak sales in
_ Casino operator
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