U.S. stocks followed European shares lower, extending the worst weekly loss for the Standard & Poor’s 500 Index in two years, amid growing concern about international credit markets. Treasuries rose with gold.
The S&P 500 was down 0.6 percent to a two-month low of 1,919.44. The benchmark gauge lost 2 percent yesterday and is down 3 percent for the week. The Stoxx Europe 600 Index slid 1.2 percent to extend its three-day loss to 3 percent, its worst decline since January. Ten-year Treasury yields decreased seven basis points to 2.49 percent. Gold rallied 1 percent, while oil slid for a fifth day.
Portuguese securities regulators suspended trading in Banco Espirito Santo shares following a 73 percent slide this week for the troubled lender, while Argentina’s failure to pay interest on its bonds triggered settlement of $1 billion of default insurance, the International Swaps & Derivatives Association determined today.