Stocks sink over global concerns

Photo

Trader Steven Marcus, left, works on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)

Associated Press

NEW YORK

Stocks fell for a fourth day as concerns over a slowdown in China and talks about a bailout for Irish banks combined to push the Dow Jones industrial average to its lowest level in a month.

Asian markets started a global sell-off after South Korea’s central bank raised interest rates to curb inflation. Shares also fell in Shanghai and Hong Kong as speculation spread that China will take more steps to rein in its red-hot economy, which would dampen global demand for industrial goods.

The Dow Jones industrial average fell 178.47, or 1.6 percent, to 11,023.50, having dipped below 11,000 earlier in the day for the first time since Oct. 20.

The Standard & Poor’s 500 index fell 19.41, or 1.6 percent, to 1,178.34, while the Nasdaq composite index fell 43.98, or 1.8 percent, to 2,469.84.

All 10 industry groups in the Standard and Poor’s 500, the index followed by most professional money managers, fell.

Though Asian countries are dealing with excessive economic growth and inflation, European finance ministers were concerned that Ireland would be the latest European country to need a bailout. The country has so far refused any outside financial assistance.

Basic materials companies, which have benefited from the booming demand from China, were among the biggest losers in U.S. trading.

The dollar surged against the euro, approaching its highest level against the shared European currency since late September. The dollar also jumped 0.8 percent against an index that measures it against a group of six other currencies.