A brutal sell-off overseas spilled into U.S. markets Monday morning, pushing the major averages down more than 1%.
Growing political concerns in Europe and disappointing economic data across the continent fed worries that a cure for Europe’s sovereign debt crisis, which seemed to be underway only weeks ago, could be in jeopardy amid weakening growth prospects and popular revolt among wide swaths of the European citizenry.
Investors were rattled by data showing manufacturing contracting. Markets also were unnerved by the French presidential race, in which President Nicolas Sarkozy trailed his Socialist opponent, and by the Dutch prime minister offering to resign in the face of a backlash against his spending cuts.
The Dow Jones industrial average fell 144.48 points, or 1.1%, to 12,884.78 early in the trading day. The Standard & Poor’s 500 sagged 15.23 points, or 1.1%, to 1,363.30. The Nasdaq composite slid 39.85 points, or 1.3%, to 2,960.60.