US stocks follow global markets sharply lower on worries over possible US interest rates hikes

Energy Associated Press

U.S. stocks fell sharply as fears of over possible interest rates hikes by the Federal Reserve roiled financial markets around the globe. In Europe, renewed concerns over Greece also spooked investors. The euro sank to a 12-year low against the dollar.

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KEEPING SCORE: The Dow Jones industrial average fell 190 points, or 1.1 percent, to 17,804 as of 10:03 a.m. Eastern time. The S&P 500 fell 20 points, or 1 percent, to 2,059. The Nasdaq composite lost 55 points, or 1.1 percent, to 4,887.

FED FEARS: Last Friday's strong U.S. jobs data for February continue to reverberate around markets. Traders think it's now more likely that the U.S. Federal Reserve will raise interest rates in June. Ultra-low interest rates and other monetary stimulus have been a boon for stocks in the six-year bull market.

ANALYST TAKE: "Regardless of whether the Fed hikes in June or September, it's coming and it's not very far away," said Craig Erlam, senior market analyst at OANDA. "That makes the dollar very strong compared to its peers."

EURO DROP: The euro fell 0.7 percent to a 12-year low of $1.0769. The dollar fell 0.3 percent to 121.02 yen.

GREEK FEARS BACK: A meeting of eurozone finance ministers in Brussels on Monday failed to yield much of a breakthrough on Greece's reform plans, a pre-condition for the country to get more bailout cash. "The Greek government is pushing the envelope with its creditors and the market is scared by the prospect of another long drawn-out debt negotiation," said David Madden, market analyst at IG.

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EUROPE SLUMP: France's CAC 40 was down 1.2 percent while Germany's DAX fell 1.2 percent. Britain's FTSE 100 was 1.4 percent lower.

CREDIT SUISSE'S NEW BOSS: Credit Suisse surged after the Swiss bank sought to turn the page on a period of scandals and fines by replacing its CEO, Brady W. Dougan, with the head of British insurer Prudential, Tidjane Thiam. Credit Suisse rose $1.52, or 6.5 percent, to $25.06.

ASIA'S DAY: Japan's benchmark Nikkei 225 fell 0.7 percent despite the yen weakening against the dollar, which usually helps export stocks. South Korea's Kospi dropped 0.4 percent. Hong Kong's Hang Seng shed 0.9 percent.

ENERGY: Benchmark U.S. crude was down 72 cents to $49.29 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oils, dropped 70 cents to $57.83 a barrel in London.

BONDS: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.13 percent from 2.19 percent late Monday.