U.S. stocks fell, ending a three-day gain in the Standard & Poor’s 500 Index, amid speculation an Irish bailout will fail to stem Europe’s debt crisis and as federal agents raided hedge funds to probe insider trading.
The euro snapped a three-day rally versus the dollar, stocks and commodities slid and Treasuries rose as Ireland’s financial bailout failed to assuage concern Europe’s debt crisis may spread. Banks led U.S. shares lower as federal agents searched hedge funds in an insider-trading probe.
Volatility indexes surged, giving the benchmark European measure the biggest two-day jump since May 2010, after Greece’s decision to schedule a vote on the region’s bailout spurred concern the nation will default.
The benchmark index for U.S. stock options jumped to the highest since February and Europe’s gauge closed at a level last reached in July on concern the Greek debt crisis is spreading to Spain and Portugal.