Stocks Drop as Dollar, Treasuries Rise Before EU Summit

Stocks slid, while the dollar and Treasuries rose, amid concern a meeting of European leaders this week will fail to halt a debt crisis that threatens to drag U.S. corporate earnings to the first decline since 2009. Oil slumped while agricultural commodities rallied.

The MSCI All-Country World Index fell for a third day, losing 1.4 percent at 4 p.m. in New York, and the Standard & Poor’s 500 Index retreated 1.6 percent. The dollar strengthened against 15 of 16 major peers, with the euro dipping below $1.25. Ten-year Treasury note yields fell seven basis points to 1.61 percent. The Spanish 10-year yield increased 26 basis points. Oil tumbled below $80 a barrel for a third day while corn and soybeans surged on concern dry weather will hurt crops.