NEW YORK, May 30 (Reuters) – U.S. stocks fell more than 1 percent on Wednesday as mounting fears about the euro zone prompted investors to sell sectors tied to economic growth.
The region’s debt woes sent investors fleeing to safe havens, like the 10-year U.S. Treasury note, whose yield fell to the lowest in 60 years. The euro, meanwhile, slid to its lowest against the U.S. dollar in 23 months. U.S. stocks have been closely tethered to the euro’s fortunes, with a 50-day correlation between the currency and the S&P 500 index at 0.91.
Yields on 10-year Spanish bonds moved closer to 7 percent, a level at which other euro zone members were forced to seek a bailout.
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