A look at highlights from the day's business news:
Stocks fall on European bank woes
U.S. stocks fell Tuesday as renewed worries about European banks weighed on financial stocks and investors flocked to such safe-haven assets as the dollar, Treasurys and gold.
All three indexes fell about 1 percent. The Dow Jones industrial average fell
107 points to 10,341, the S&P 500 slipped 13 points to close at 1,092 and the Nasdaq lost 25 points to 2,209, according to early tallies.
During last week's stock rally, the Dow turned positive for the year. But Tuesday's losses quickly turned the index back into the red.
On Friday, the major indexes gained more than 1 percent, after a government report showed fewer jobs were lost in July than economists had expected. U.S. markets were closed Monday for Labor Day.
Bonds rise as European concerns 'simmer'
Investors returned from a holiday weekend with a gloomier outlook on the economy, thanks to an old concern that won't seem to die - the health of European banks. Those renewed concerns about overseas banks pushed Treasury prices higher Tuesday, snapping three straight sessions of decline.
An analysis in Tuesday's Wall Street Journal said Europe's stress tests, meant to measure the health of the continent's financial sector, understated major banks' holdings of government debt.
The yield on the benchmark 10-year note fell to 2.6 percent, down from 2.7 percent Friday. Bond prices and yields move in opposite directions. The yield on the 5-year note eased to 1.41 percent, the 30-year bond fell to
3.66 percent and the 2-year note slid to 0.49 percent.
- CNNMoney.com's Annalyn Censky and Julianne Pepitone contributed to this report.