NEW YORK - (AP) - The Dow Jones industrial average is closing witha loss of 389 points after Italy's borrowing costs soared and talkscollapsed in Greece on forming a new government.
Interest rates on Italian government debt spiked, evidence thatinvestors are losing faith in the country's ability to repay itsdebt.
In Greece, power-sharing talks fell apart between the country'stwo main political parties. That raised doubts about whether adefault can be avoided.
The Dow sank 3.2 percent to close at 11,781, the biggest dropsince Sept. 22.
The S&P 500 lost 47 points, or 3.7 percent, to 1,229.
The Nasdaq slid 106, or 3.9 percent, to 2,622.
Nine stocks fell for every one that rose on the New York StockExchange. Trading volume was high at 4.6 billion shares.