Wall Street falls 1% on Europe troubles

Stocks fell by over one per cent today as renewed concerns about Europe’s economy and the debt crisis in the region spurred profit-taking, reports Reuters.

In addition, Wal-Mart weighed heavily on the Dow following a report that the retailer stymied a probe into allegations of bribery. The eurozone’s business nosedive has increased at a far quicker pace than anticipated this month as European factories recorded their worst month for almost three years.

To add to the problems, the Dutch government was unable to agree on budget reductions over the weekend, meaning that elections in the eurozone member practically unavoidable. The developments put fresh doubts on the nation’s support for future measures within the region.

The debt crisis in Europe has been a major hindrance for equities as investors are concerned that it could affect corporate profits and growth. While the S& brought a two-week string of losses to an end on Friday, is has dropped by roughly four per cent from early April’s closing high.

The Dow Jones industrial average fell by 162.75 points, or 1.25 per cent, to 12.866.51. meanwhile, the Nasdaq Composite Index slid by 44.56 points, or 1.49 per cent, to 2,955.89, and the Standard & Poor’s 500 Index dropped by 17.82 points, or 1.29 per cent, to 1.360.71.

The Dow’s biggest faller was Wal-Mart Stores Inc, which tumbled by 4.4 per cent to $59.69 following a report in the New York Times that officials at the company had stymied and internal investigation relating to extensive bribery allegations at its Mexican subsidiary.