Wall Street down on Europe; bear market fears grow

Wall Street fell for a third day on Tuesday on fears Europe still has failed to tackle its debt crisis, prompting worries the market is headed to new lows for the year.

The Dow Jones industrial average dropped 100.96 points, or 0.90 percent, to 11,139.30. The Standard & Poor's 500 Index fell 8.73 points, or 0.74 percent, to 1,165.24. The Nasdaq Composite Index lost 6.50 points, or 0.26 percent, to 2,473.83.

European shares hit their lowest close in more than two years, on worries that political discord was exacerbating the euro zone debt crisis and that major economies were headed for recession.

The pan-European FTSEurofirst 300 index of top shares fell 0.7 percent to 903.87 points, its lowest close since July 2009. Volumes were high, 11 percent above the index's 90-day average.

Japan's Nikkei average slid 2.2 percent today to a 2-1/2 year closing low after sovereign debt fears pummeled European stocks and as investors worried upcoming US job measures will not be enough to boost confidence in the slowing US. economy.

The Nikkei ended down 2.2 percent at 8,590.57 in active trade, falling below its closely watched Aug. 22 low of 8,619.21 and marking its lowest intraday level since March 15, when stocks were sold off after the earthquake and tsunami.