Stocks Drop With Industrial Metals, Euro; Treasuries Rise

U.S. stocks sank, erasing yesterday’s rally, amid a plunge in industrial metals, disappointing earnings and concern Apple Inc.’s iPhone sales may miss forecasts. The euro slid as Germany’s central bank chief reportedly said European policy makers may cut rates if needed.

The Standard & Poor’s 500 Index fell 1.4 percent to 1,552.01 at 4 p.m. in New York. Germany’s DAX index slid 2.3 percent and erased its gain for the year after European auto sales reached a 20-year low. Treasuries rose, with 10-year yields touching lows of the year, as concern that terrorism is increasing in the U.S. fueled demand for the safest assets. The euro fell against 14 of 16 major peers. Oil dropped to a four-month low in New York, while copper sank 3 percent in London and tin and lead slid more than 2 percent. Gold for immediate delivery rose 0.7 percent to $1,377.43 an ounce.