US stocks fell more than 1 percent on Wednesday as mounting fears about the eurozone prompted investors to sell sectors tied to economic growth. The region's debt woes sent investors fleeing to safe havens, like the 10-year US Treasury note, whose yield fell to the lowest in 60 years.
The euro, meanwhile, slid to its lowest against the US dollar in 23 months. US stocks have been closely tethered to the euro's fortunes, with a 50-day correlation between the currency and the S&P 500 index at 0.91. The Dow Jones industrial average was down 158.18 points, or 1.26 percent, at 12,422.51. The Standard & Poor's 500 Index was down 18.99 points, or 1.43 percent, at 1,313.43. The Nasdaq Composite Index was down 40.20 points, or 1.40 percent, at 2,830.79.
All 10 S&P 500 sectors fell, with energy the biggest decliner of the day. The group tumbled 2.9 percent alongside a drop in crude oil prices, and consumer discretionary stocks were off 1.7 percent. The PHLX oil service sector dropped 3.8 percent while crude fell 3.3 percent. Halliburton Co dropped 4.5 percent to $30.56. The CBOE Volatility index jumped more than 12 percent, the biggest spike for the "fear index" since mid-April.
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