Trouble on two fronts in Europe's debt crisis dragged the Dow Jones industrial average down 389 points Wednesday. The S&P 500 lost 3.7 percent, its biggest one-day drop since August, after Italy's borrowing costs soared and talks collapsed in Greece on forming a new government.
Interest rates on Italian government debt spiked, evidence that investors are losing faith in the country's ability to repay its debt. In Greece, power-sharing talks fell apart between the country's two main political parties. That raised doubts about whether the country can avoid a default.
Goldman Sachs, Morgan Stanley and other large banks were hit hard on worries over their ability to handle a financial crisis that might be brought on by trouble in Europe.
The Dow Jones industrial average sank 389.24 points, or 3.2 percent, to close at 11,780.94.
The S&P 500 lost 46.82 points, or 3.7 percent, to 1,229.10.
The Nasdaq composite lost 105.84, or 3.9 percent, to 2,621.65.
For the week:
The Dow is down 202.30, or 1.7 percent.
The S&P 500 is down 24.13, or 1.9 percent.
The Nasdaq is down 64.50, or 2.4 percent.
For the year to date:
The Dow is up 203.43, or 1.8 percent.
The S&P 500 is down 28.54, or 2.3 percent.
The Nasdaq is down 31.22, or 1.2 percent.