Stocks Fall, Euro Reverses Gain as U.S. Treasuries Trim Losses

U.S. stocks tumbled, halting a three-day rally, and the euro reversed an early gain versus the dollar as investors watched for signs of progress in Europe’s efforts to stem the government debt crisis. Treasuries trimmed losses as the 10-year note’s yield capped the biggest increase over four days since January 2009.

The Standard & Poor’s 500 Index lost 2.1 percent to 1,151.06 at the 4 p.m. close in New York after climbing 0.8 percent earlier and rallying 4.1 percent over the previous three sessions. The euro weakened 0.2 percent to $1.3554, erasing a 0.8 percent advance. Ten-year yields rose two basis points to 1.997 percent, trimming a nine-point increase, and have climbed 27 points in four days. The S&P GSCI Index of commodities slumped 2.7 percent as copper sank 5.6 percent. Oil lost 3.8 percent after U.S. supplies increased last week.