Dow Plunges 200 Points on EU Fears

By Newsroom America Staff at 23 Jul 2012

(Newsroom America) -- The Dow Jones Industrial Average plunged 200 points Monday on new fears that Spain will need a full sovereign bailout and that Greece may abandon the euro.

The S&P 500 and the Nasdaq also fell sharply, reports said. All 10 S&P sectors were firmly in the red, CNBC reported.

All three indexes are now in negative territory for the month of July.

European shares also plunged, and the euro hit a new two-year low against the U.S. dollar, as regional governments in Spain appeared set to request aid from the central government.

"Euro zone finance ministers approved terms for a loan of up to 100 billion euros for Madrid to recapitalize its banks last week," CNBC said.

Spain's economy also contracted in the second quarter, adding further economic pressure to the zone.

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