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Stocks get whacked as Italy turmoil drags on global markets

Gina Heeb
Italy soccer fan

Stocks plummeted Tuesday as unease surrounding political turmoil in Italy spread across global markets. The Dow Jones industrial average shed about 500 points at session lows, dragged down by bank stocks including JPMorgan Chase and Goldman Sachs

Here's the scoreboard:

Dow Jones Industrial Average: 24,362.48 −390.61 (-1.58%)

S&P 500: 2,691.06 -30.27 (-1.11%)

AUD/USD: 0.7504  -0.0043 (-0.57%)

ASX 200 SPI futures: 5,962.5 -42.5 (-0.71%)

  1. Italy is in political deadlock. President Sergio Matterella over the weekend blocked the nomination of euroskeptic Paulo Savano as finance minister and appointed former IMF official Carlo Cottarelli as interim prime minister until new elections can be held
  2. Italian bonds had their worst day in a quarter century. Yields on 10-year BTPs soared more than 50 basis points. 
  3. US bond yields saw the biggest daily drop in nearly two yearsThe benchmark 10-year Treasury yield fell more than 10 basis points to less than 2.80%. 
  4. The euro tumbled to a six-month low against the dollar. Safe-haven currencies soared, with the US dollar up 0.75% and the Japanese yen gaining more than 1.5% against major peers. 
  5. Oil continued to slide, following reports that OPEC and other supply-cutting countries could raise output. West Texas Intermediate, the US benchmark, dropped 1% to $66.82 a barrel. 

Here is the upcoming economic calendar:

  • Australia reports private capital expenditures.
  • Business confidence data is out in New Zealand.
  • US GDP numbers cross the wire.
  • ADP releases US employment data. 

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SEE ALSO: Italy's populists reportedly drew up a plan to drop the euro — here's what you need to know