U.S. Markets closed

Stocks plunge on Italy's political uncertainty

Leia Klingel

U.S. stocks accelerated their losses as Tuesday’s session continued, with the Dow, at its low point, dropping more than 400 points.

Sparking the sell-off was the political crisis in Italy. Italian President Sergio Mattarella decided Sunday to block the formation of a euroskeptic government, reviving longstanding worries about a political crisis in Italy and the broader stability of the Eurozone, according to Dow Jones Newswires.

The Dow fell on Friday as a decline in oil and concern over a scuttled summit with North Korea made investors wary on the eve of the three-day Memorial Day weekend. Despite geopolitical tensions, the major averages closed the week in positive territory.

Tuesday, financial shares led the decline, with insurers, diversified financials and banks under pressure. Falling Treasury yields are also a headwind after the yield on the 10-year note fell to the lowest since April 12. The S&P financial sector is on pace for its biggest loss in two months

On Tuesday, economic data reports included the S&P Case-Shiller report on home prices. Home prices increased in March, but the gains were in line with the prior month’s advance.

Oil futures were sharply lower on Tuesday as traders digested the potential for Saudi Arabia and Russia to boost oil output.

The Conference Board's  consumer confidence index rose to 128 in May from a revised 125.6 in April. A measure of current conditions, the present situation index, hit a 17-year high of 161.7 up from 157.5 in the prior month.

Oil futures were sharply lower on Tuesday as traders digested the potential for Saudi Arabia and Russia to boost oil output.

Fox Business' Ken Martin contributed to this article

Related Articles