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Stocks sink as gloom gathers over Wall St

Nov 07, 2012, 3:36 PM EST
A stock specialist monitors prices August 2, 2011 on the floor of the New York Stock Exchange. Stocks give up more than 2% Wednesday as, following the re-election of President Obama, investors’ focus returned to the U.S. budget debate and Europe’s debt crisis.

U.S. stocks sank 2% and U.S. Treasuries rose as investors immediately put the long U.S. presidential election campaign behind them and focused on the country's fiscal problems and the worsening ones of the euro zone, fearing either could lead to a new recession. The S&P 500 index traded below 1,400 points for the first time since September and the Dow Jones Industrial Average fell to below 13,000. Europe's debt crisis sent jittery investors scrambling for safer assets. U.S. Treasuries saw their biggest advance in almost three months. The yield on the 10-year note fell 12 basis points to 1.62%.