The S&P 500 hit a 4-year high at the start of April but has since pulled back, with the benchmark index struggling to stay above the 1390 level. Among the reasons cited for this retreat are worries about a faltering economic recovery (think jobs) and skittishness about corporate profits after a few high-profile disappointments this earnings season. And of course, there is Europe’s ongoing debt mess, which resurfaced early this month as Spain’s mounting deficit sent Spanish bond yields soaring and prices tumbling.
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Take a look at the chart above that shows a comparison of U.S. stock prices and Spanish debt. The two have moved largely in tandem over the course of the month.