After a dismal jobs report Friday, the market mood Monday remains gloomy: "Renewed concerns that Europe's debt crisis would spread, an increase in Chinese inflation and an impasse in budget talks in Washington converged to jolt investors," lead a Reuters analysis. Faced with that triple-threat of economic worries, investors have responded accordingly this morning, reports The Wall Street Journal:
The Dow Jones Industrial Average lost 115 points, or 0.9%, to 12541 in early trading, led lower by Alcoa and Bank of America, which each fell 2.2%. The Standard & Poor's 500 stock index dropped 15 points, or 1.1%, to 1329. The Nasdaq Composite shed 29, or 1%, to 2831.
Rounding out this morning's debt concerns, Bloomberg cites an analyst who figures: "The markets will remain under pressure until the debt crisis in Europe is perceived to be better contained." To which The Economist adds:
Europe's leaders are finally moving in the right direction. But they're well behind the curve. And if Spain and Italy become well and truly embroiled in this mess, the scope of the challenge may overwhelm the euro zone's ability to manage the crisis. Politically and economically.