Investing.com - U.S. stock indices took their largest percentage drops of 2013 after growing political uncertainties in Spain and Italy coupled with soft factory data in the U.S. sent investors selling stocks and flocking to the safety of the dollar.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.93%, the S&P 500 index was down 1.15%, while the Nasdaq Composite index fell 1.51%.
Stocks edged lower after calls arose for Spanish Prime Minister Mariano Rajoy to resign.
Rajoy faced calls to resign in wake of corruption allegations against him and senior officials in the ruling Popular Party, which sent investors to the safety of the greenback.
Elsewhere, Spanish employment data revealed that the number of unemployed people in January rose by 2.7%, or by 132,055, to 4.98 million.
Analysts were expecting the number to rise by 150,000, though investors shrugged off the data.
Electoral uncertainty in Italy pushed stocks down in the U.S. and elsewhere as well, as former Prime Minister Silvio Berlusconi continues to gain ground in opinion polls.
The Italian 10-year bond yields rose to 4.42% amid the uncertainty.
Meanwhile in the U.S., factory orders rose less than expected in December, which further fueled safe-haven dollar buying.
In a report, the U.S. Census Bureau said factory orders rose by a seasonally adjusted 1.8% in December, missing expectations for a gain of 2.2%.
Factory orders in November fell by a revised 0.3%.
Leading Dow Jones Industrial Average performers included Boeing, up 0.45%, Cisco Systems up 0.05%, and UnitedHeatlh Group, down 0.02%.
The Dow Jones Industrial Average's worst performers included Travelers Companies, down 2.35%, Merck, down 2.34%, and Bank of America, down 1.96%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 3.13%, France's CAC 40 fell 3.01%, while Germany's DAX 30 finished down 2.49%. Meanwhile, in the U.K. the FTSE 100 finished down 1.58%.
On Tuesday, In the U.S., the Institute of Supply Management is to publish a report on U.S. service-sector activity.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.93%, the S&P 500 index was down 1.15%, while the Nasdaq Composite index fell 1.51%.
Stocks edged lower after calls arose for Spanish Prime Minister Mariano Rajoy to resign.
Rajoy faced calls to resign in wake of corruption allegations against him and senior officials in the ruling Popular Party, which sent investors to the safety of the greenback.
Elsewhere, Spanish employment data revealed that the number of unemployed people in January rose by 2.7%, or by 132,055, to 4.98 million.
Analysts were expecting the number to rise by 150,000, though investors shrugged off the data.
Electoral uncertainty in Italy pushed stocks down in the U.S. and elsewhere as well, as former Prime Minister Silvio Berlusconi continues to gain ground in opinion polls.
The Italian 10-year bond yields rose to 4.42% amid the uncertainty.
Meanwhile in the U.S., factory orders rose less than expected in December, which further fueled safe-haven dollar buying.
In a report, the U.S. Census Bureau said factory orders rose by a seasonally adjusted 1.8% in December, missing expectations for a gain of 2.2%.
Factory orders in November fell by a revised 0.3%.
Leading Dow Jones Industrial Average performers included Boeing, up 0.45%, Cisco Systems up 0.05%, and UnitedHeatlh Group, down 0.02%.
The Dow Jones Industrial Average's worst performers included Travelers Companies, down 2.35%, Merck, down 2.34%, and Bank of America, down 1.96%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 3.13%, France's CAC 40 fell 3.01%, while Germany's DAX 30 finished down 2.49%. Meanwhile, in the U.K. the FTSE 100 finished down 1.58%.
On Tuesday, In the U.S., the Institute of Supply Management is to publish a report on U.S. service-sector activity.