Dow ends below 10,000
Stocks erased gains by the close Wednesday, with the Dow ending below 10,000 for the first time in three months as worries over global growth and a slide in the euro overshadowed upbeat economic news.
The Dow Jones industrial average lost 70 points, or 0.7 percent, the S&P 500 index lost 6 points, or 0.6% percent and the Nasdaq lost 15 points, or 0.7 percent.
A global market rally and a strong housing market report gave stocks a boost in the morning, but trading was choppy through the rest of the session as the euro weakened. Stocks slipped in the last hour of trading.
Oil rises 4% as global markets rebound
Oil rose about 4% Wednesday, as world financial markets rebounded from yesterday's losses and traders welcomed a supply report showing gasoline stocks declined last week.
Crude for July delivery rose $2.76, or about 4 percent, to $71.51 a barrel in global trading Tuesday. Gasoline prices fell for the 20th consecutive day, slipping to $2.771 a gallon from $2.78 the day before, according to a survey by motorist group AAA. In that time period, the price has dropped 15.8 cents, or nearly 5.4 percent.
Markets in Europe and Asia both posted gains Wednesday as lower prices on stocks and oil lured buyers. Financial markets in Europe and Asia plummeted the day before on fears about growing political tensions in Korea and continued concerns about Europe's debt crisis.
Euro falls, but losses are capped
The euro continued its slide against the dollar Wednesday, but losses were limited as European stocks rallied.
The dollar rose 0.3 percent against the euro to $1.2311. The greenback jumped 0.1 percent versus the British pound to $1.4401. It was up 0.3% against the Japanese yen at ¥90.44.
The dollar is up 8.7 percent on the euro for the month, and up almost 17 percent year to date. The euro has been mired in a sell-off for the past three weeks, as debt concerns in European countries continue to weigh on the zone's currency.
Treasury fall as equities rebound
Treasury prices slipped and yields rebounded Wednesday as risk appetite picked up and stocks made a comeback in early trading.
The benchmark 10-year note fell 22/32 to 102-7/32, pushing the yield up to 3.24 percent. On Tuesday, the 10-year note yielded 3.17 percent after touching 3.06% earlier, the lowest level in 13 months. Bond prices and yields move in opposite directions.
The 30-year bond edged lower by 1-10/32 to 104-7/32 and yielding 4.13 percent. The 5-year note lost 13/32 to 102-2/32, yielding 2.06 percent, while the 2-year note fell 19/32 to 99-27/32, yielding 0.83 percent.
On Tuesday, Treasury prices jumped as investors continued to worry about Europe's debt and its affect on the global economic recovery. Treasurys came under pressure Wednesday as stocks opened higher, following the release of positive economic reports from the government.
CNNMoney.com reporters Annalyn Censky, Blake Ellis, Julianne Pepitone and Alexandra Twin contributed to this report.