U.S. stocks closed sharply lower on Wednesday after Fitch released report concerning U.S. banks' exposure to Europe debt, with each of three major indexes losing over 1.5 percent. The Dow Jones industrial average dropped 190.57 points, or 1.58 percent, to 11,905.59. The Standard & Poor's 500 was down 20.90 points, or 1.66 percent, to 1,236.91. The Nasdaq Composite Index fell 46.59 points, or 1.73 percent, to 2,639.61.
In its report, Fitch said U.S. bank current exposure to Europe was "manageable". But it also said, "unless the euro zone debt crisis is resolved in a timely and orderly manner, the broad credit outlook for the U.S. banking industry could worsen."
Fitch's report pressured financial sector. Shares of major banks such as Morgan Stanley and Goldman Sachs dropped sharply.
On the economic front, the Labor Department said the Consumer Price Index dropped 0.1 percent in October due to falling gas prices.
The core CPI, which excludes volatile food and energy costs, rose 0.1 percent. The number rose 0.3 percent the previous month.
The cost of renting an apartment rose, as did prices for health care products and services
Meanwhile, the Federal Reserve said U.S. industrial production increased 0.7 percent in October, reflecting a very strong 0.5 percent rise in manufacturing output and a 2.3 percent rebound in mining output.
As for euro zone crisis, investors were concerned that the European debt crisis might lead the region into a deep recession.
Italian 10-year bond yields have jumped over 7 percent. Adding to concerns, bonds yields issued by France, the Netherlands and Germany have also increased.
On other markets, the U.S. dollar rose against most major currencies in late New York trading on Wednesday as investors' concerns about the eurozone debt crisis continued to weigh on the euro, and the dollar index rose 0.44 percent to 78.21 on Wednesday, boosted by risk-aversion appetite.
As for oil, U.S. crude oil price surged on Wednesday as news said there were plans to reverse the Seaway pipeline that currently moves oil from the Gulf Coast to the oil storage hub at Cushing. Oil price passed 100 dollars a barrel for the first time in five months.
Light, sweet crude for December delivery soared 3.22 dollars, or 3.24 percent to settle at 102.59 dollars a barrel on the New York Mercantile Exchange. It was the first time to settle above 100 dollars since June 9.
But in London, Brent crude for December delivery dropped and last traded below 112 dollars a barrel.
In its report, Fitch said U.S. bank current exposure to Europe was "manageable". But it also said, "unless the euro zone debt crisis is resolved in a timely and orderly manner, the broad credit outlook for the U.S. banking industry could worsen."
Fitch's report pressured financial sector. Shares of major banks such as Morgan Stanley and Goldman Sachs dropped sharply.
On the economic front, the Labor Department said the Consumer Price Index dropped 0.1 percent in October due to falling gas prices.
The core CPI, which excludes volatile food and energy costs, rose 0.1 percent. The number rose 0.3 percent the previous month.
The cost of renting an apartment rose, as did prices for health care products and services
Meanwhile, the Federal Reserve said U.S. industrial production increased 0.7 percent in October, reflecting a very strong 0.5 percent rise in manufacturing output and a 2.3 percent rebound in mining output.
As for euro zone crisis, investors were concerned that the European debt crisis might lead the region into a deep recession.
Italian 10-year bond yields have jumped over 7 percent. Adding to concerns, bonds yields issued by France, the Netherlands and Germany have also increased.
On other markets, the U.S. dollar rose against most major currencies in late New York trading on Wednesday as investors' concerns about the eurozone debt crisis continued to weigh on the euro, and the dollar index rose 0.44 percent to 78.21 on Wednesday, boosted by risk-aversion appetite.
As for oil, U.S. crude oil price surged on Wednesday as news said there were plans to reverse the Seaway pipeline that currently moves oil from the Gulf Coast to the oil storage hub at Cushing. Oil price passed 100 dollars a barrel for the first time in five months.
Light, sweet crude for December delivery soared 3.22 dollars, or 3.24 percent to settle at 102.59 dollars a barrel on the New York Mercantile Exchange. It was the first time to settle above 100 dollars since June 9.
But in London, Brent crude for December delivery dropped and last traded below 112 dollars a barrel.
