U.S. stocks erased losses amid optimism European leaders will do more to halt contagion from the region’s debt crisis. The euro pared its drop after sinking to an almost two-year low and U.S. Treasuries trimmed gains. Oil closed below $90 a barrel for the first time since October.
The Standard & Poor’s 500 Index rose 0.2 percent to close at 1,318.86, reversing a 1.5 percent tumble. The Dow Jones Industrial Average ended down 6.66 points at 12,496.15 after plunging as much as 191 points. The euro was down 0.7 percent at $1.2592 after dropping to as low as $1.2545. Ten-year Treasury yields lost 3.6 basis points to 1.73 percent, trimming a drop of 6 basis points. Demand for assets considered safe earlier sent German 30-year yields below 2 percent for the first time.