Global stocks drop on Italy's vote uncertainty

Stocks fell today as concern grew that an unclear outcome in Italy's elections could hamper the country's effort to implement economic reforms.

The S&P 500 suffered its worst decline since Nov. 7 today in a sharp reversal from initial gains as elections in Italy stoked concerns that a divided parliament could disrupt the country's fiscal reforms and the euro zone's stability.

Based on the latest available data, the Dow Jones industrial average slid 216.40 points, or 1.55 percent, to end at 13,784.17. The Standard & Poor's 500 Index dropped 27.75 points, or 1.83 percent, to finish at 1,487.85. The Nasdaq Composite Index lost 45.57 points, or 1.44 percent, to close at 3,116.25.

Uncertainty over Italy's general elections dragged European stock markets off earlier highs, on concerns that an unclear outcome could hamper the country's efforts to implement economic reforms.

The pan-European FTSEurofirst 300 index closed up 0.04 percent at 1,166.07 points, while the euro zone's blue-chip Euro STOXX 50 index advanced 0.8 percent to 2,651.86 points.

The Nikkei average soared 2.4 percent to a 53-month high with exporters leading gains on a weaker yen, after sources said Japan was likely to nominate Asian Development Bank President Haruhiko Kuroda, an advocate of aggressive monetary easing, as its next central bank governor.

Currency-sensitive exporters led the charge after the yen hit a 33-month low of 94.77 yen to the dollar on Monday, while financials and real estate companies also advanced as they stood to benefit from reflationary policy.

The Nikkei climbed 276.58 points to 11,662.52, its highest level since late September 2008.