Stocks Sink on U.S. Credit Outlook as Euro Falls on Debt Crises

U.S. stocks sank the most in a month, oil slid and gold rose to a record after Standard & Poor’s cut the American credit outlook to negative and concern about Europe’s debt crisis grew. Greek two-year bond yields surged to 20 percent for the first time since at least 1998.

The S&P 500 tumbled 1.1 percent to 1,305.14 at 4 p.m. in New York, its worst drop since March 16, and the Stoxx Europe 600 Index slid 1.7 percent. Ten-year Treasury notes gained, sending yields down four basis points to 3.37 percent, amid speculation S&P’s move will motivate lawmakers to pass a budget that requires less borrowing. The euro lost 1.4 percent to $1.4234 and Portuguese debt-insurance costs reached a record. The S&P GSCI index of commodities slid 1.2 percent as oil sank.