US stocks fall after Spain's weak bond auction

Published April 4, 2012 3:54PM (EDT)

NEW YORK (AP) — The stock market is suffering its worst loss in a month after a weak bond auction in Spain renewed fears about the European debt crisis. The price of gold plunged to its lowest level since January.

Investors looking for a safe place for their money drove up the price of U.S. government debt. The dollar surged against the euro.

Just before noon Eastern, the Dow was down 150 points at 13,049. The Standard & Poor's 500 index was down 16 points at 1,397. The Nasdaq composite index lost 52 to 3,061.

In Spain, bond yields spiked after a disappointing auction of government debt, a signal that investor confidence in Spain's finances is weakening. Last week, Spain announced tax increases and budget cuts that will probably slow its economy further.

By Salon Staff

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