Daily Financial News - Mortgage | Real Estate | Stock Market

Debt Fears Rattle Market - CNNMoney.com -- Fears about the fallout from a growing debt crisis in Europe dragged on Wall Street Thursday, sending the market to its lowest close in three months, with stocks hit across the board.

The Dow Jones industrial average tumbled 268 points, or 2.6%, closing at 10,002.26, its lowest point since Nov. 4. The blue-chip briefly dipped below 10,000 late in the day, falling to that level for the first time since early November.

The Dow's decline marked the biggest one-day point loss since March 5 of last year.

The S&P 500 index sank 34 points, or 3.1%, closing at the lowest point since Nov. 4. The one-day point loss was the biggest since April 20, 2009.

The Nasdaq composite fell 65 points, or 3%, and closed at its lowest point since Nov. 6. The one-day point loss was the largest since Feb. 10, 2009.

Debt woes propelled the dollar to a more than seven-month high versus the euro, which in turn pummeled dollar-traded commodities such as oil and gold. Treasury prices spiked, lowering yields, in a classic flight-to-safety move.

Bond yields and interest rates down by the most since mid-December – Yields on 10-year fell 10 basis points to 3.60%, so interests rates went down about an 1/8th of a point this morning.

Bonds also benefited from a Labor Department report showing jobless claims unexpectedly rose last week to the highest level since mid-December, adding to concerns that the economic recovery won't be smooth or swift. First-time unemployment claims rose 8,000 to 480,000 in the latest week.