NEW YORK: U.S. stocks fell sharply Tuesday, with the Dow Jones industrial average taking its worst single-day hit in four months, as weaker earnings and concern about Spain’s finances heightened fears about the global economy.
“You can rally on rhetoric, you can rally on monetary policy, but at some point investors need to sink their teeth into something, and this quarter’s earnings don’t seem to be solid enough,” said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.
After a 262-point drop during the session, the Dow Jones industrial average finished at 13,102.53, losing 243.36 points, or 1.8 percent, in its biggest daily drop since June 21.
Chemical maker DuPont paced the Dow’s losses that extended to all but two of its 30 components.
DuPont plans to cut 1,500 employees after reporting a quarterly profit below estimates.
Two other Dow components added to investor worries. 3M Co. declined 4.1 percent after the manufacturer reported a 6.7 percent profit gain in the third quarter, but reduced its outlook for the full year.
And United Technologies Corp. pointed to soft demand from airlines in narrowing its sales outlook for 2012. International Business Machines Corp., shipper FedEx Corp. and fast-food chain McDonald’s Corp. all issued results in recent days that disappointed investors, said Ablin.
Breaking through the 1,420-support level not breached since early September, the Standard & Poor’s 500 index lost 20.71 points, or 1.4 percent, to 1,413.11.
The Nasdaq composite declined 26.50 points, or 0.9 percent, to 2,990.46, its first finish below 3,000 since Aug. 6.
Apple Inc. shares slid 3.3 percent after the company unveiled a less expensive and smaller iPad at an event Tuesday in San Francisco.
The Federal Open Market Committee began its two-day monetary-policy meeting on Tuesday afternoon, with a statement due today.