The Santa rally is being seriously threatened: Stocks were down sharply in midday trading on Wednesday, skewering five days of gains by the S&P 500, as investors fretted over concerns that European banks are reluctant to lend cash.
At noon, the Dow Jones industrial average was down 130 points or 1.1 per cent, to 12,161. The broader S&P 500 was down 14 points or 1.1 per cent, to 1251.
All 10 subindexes within the S&P 500 were down, with economically sensitive stocks taking the brunt of the selloff. Materials fell 2.1 per cent, energy stocks and industrials fell 1.6 per cent each and financials fell 1.5 per cent.
Defensive stocks held up better. Consumer staples fell just 0.3 per cent and telecom stocks fell 0.5 per cent
In Canada, the S&P/TSX composite index was down 198 points or 1.7 per cent, to 11,729.
Commodity producers were the biggest laggards here. Materials fell 3.9 per cent, with gold producers taking some of the biggest hits after the price of gold continued to meander downward: It was recently spotted at $1,565 (U.S.), down $30. Energy stocks fell 1.8 per cent after the price of crude oil dipped below $100 a barrel.