The Dow Jones Industrial Average tanked nearly 400 points on Tuesday as turmoil over a political crisis in Italy triggered fears that it could spread to financial woes throughout Europe.
The Dow tumbled 391 points to 24,361. The S&P 500 fell 32 points to 2,689 while the Nasdaq Composite slipped 37 points to 7,396.
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At one point the Dow was down more than 500 points.
Concerns over Italy erupted when President Sergio Mattarella, who has been pro-European Union, vetoed the appointment of Paolo Savona as the country's finance minister, angering members of the populist government. Savona is a strong critic of the euro and was the choice of the two anti-establishment political parties, the Five Star Movement and League Party.
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Following Mattarella's decision, both parties abandoned their attempts to form a government, prompting widespread speculation that a more radical faction will gain a stronger foothold in the government.
Mattarella made no excuses for his decision.
"The uncertainty over our position in the euro alarmed Italian and foreign investors," Mattarella said.
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He said rising Italian sovereign debt, which is about $3 trillion, will cause Italy to continue to dip into its savings and hurt companies.
"Membership of the euro is a fundamental choice for the future of our country and our young people," Mattarella said.
Kaynak:Abcnews