Stocks tumble on renewed worries about Europe

Stocks lightened their losses but still are deeply in the red this morning amid fear that Europe’s lingering economic crisis is entering another dangerous phase.

Concern that Spain may need a bailout spooked investors worldwide as the country’s borrowing costs soared. European stock markts tumbled, with Asian and U.S. shares following in lockstep.

As of 9:30 a.m. Pacific, the Dow Jones industrial average was off 155.49 points, or 1.2%, to 12,667.08. The index was down nearly 240 points at its low point.

The Standard & Poor’s 500 index fell 19.45 points, or 1.5%, to 1,342.95. The Nasdaq composite index got hit the hardest, giving up 54.71 points, or 1.9%, to 2,870.59.

Yields on Treasury bonds fell to new lows amid an investor flight to quality. The yield on the 10-year note fell to a new low of 1.43%.

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