Stocks Ended Sharply Lower on Italy Worries

U.S. stocks ended sharply lower on Tuesday, as political turmoil in Italy sparked concerns about the stability of the euro zone and shares of U.S. banks tumbled. The Dow Jones Industrial Average fell 391.64 points, or 1.58%, to 24,361.45. The S&P 500 lost 31.47 points, or 1.16%, to 2,689.86. The Nasdaq Composite dropped 37.26 points, or 0.50%, to 7,396.59.

U.S. and global benchmark oil prices diverged on Tuesday, with concerns about a potential rise in oil supply pulling West Texas Intermediate crude down for a fifth straight session. July WTI fell by $1.15, or 1.7%, to settle at $66.73 a barrel. July Brent crude added 9 cents, or 0.1%, to $75.39 a barrel.

A global equity selloff was triggered by political turmoil in Italy, which could lead to new elections that might serve as a de facto referendum on the country’s membership in the euro. Italian government bonds sold off sharply.