U.S. Stocks Retreat, Treasuries Gain on Spain Skepticism

U.S. stocks fell, while the euro and commodities erased early rallies, as optimism over Spain’s bailout plan gave way to skepticism that the rescue will succeed in taming the European debt crisis. Treasuries advanced.

The Standard & Poor’s 500 Index lost 1.3 percent to 1,309.03 at 4 p.m. in New York after climbing as much as 0.7 percent in the first minutes of trading. The euro weakened 0.3 percent to $1.2484 after surging 1.2 percent. Oil fell to an eight-month low, reversing a 3 percent jump, and the S&P GSCI Index of commodities slid 1 percent. Ten-year Treasury note yields decreased four basis points to 1.59 percent after surging nine basis points earlier.