Dow plummets over worries of political turmoil in Italy

Dow Jones industrial average What is Dow Jones stock price today? Italy crisis hits Dow

Dow Jones industrial average What is Dow Jones stock price today? Italy crisis hits Dow

US stocks are recovering almost all of the ground they lost the day before as investors hope Italy might be able to avoid a new round of elections.

The S&P 500 index rose 34 points, or 1.3 percent, to 2,724.

All three major indices closed lower on Tuesday amid uncertainties about Italy's political situation, with the Dow plunging 500 points at session low.

The benchmark Shanghai Composite index dropped 79.02 points or 2.53 percent to finish at 3,041.44 while Hong Kong's Hang Seng index ended down 427.79 points or 1.40 percent at 30,056.79.

Clothing company Chico's FAS plunged 23 percent to $7.69 after its profit fell short of expectations and shoe retailer DSW gave up some of its gains from earlier in the year as it lost 10.4 percent to $23.35.

However, lingering concerns about political uncertainty in Italy may keep some traders from getting back into the markets. KeyCorp rose 2.2 per cent.

The blue-chip index fell below its 50-day moving average, a key technical level that represents short-term momentum, for the first time since May 9, while the S&P 500 is only a few points away from breaching that level.

The Russell 2000 index of small-cap stocks rose 1.5 percent to end at an all-time closing high, buoyed by data confirming the strength of the USA economy. The DAX in Germany dropped 0.2 percent to 12,754. JPMorgan Chase gained 1.3 percent to $107.27 and Bank of America picked up 1.4 percent to $53.69.

Australian shares fell notably amid broad-based selling as investors rushed to safe-haven assets such as U.S. Treasuries.

ENERGY: Benchmark U.S. crude fell 57 cents to $67.31 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price worldwide oils, added 78 cents to $76.08 per barrel in London.

Most investors remain cautious though, with Goldman Sachs cutting its forecast for the euro's exchange rate against the dollar due to Italian political developments.

The Dow Jones industrial average rose 162 points, or 0.6 percent, to 24,517. The unit has fallen 4.5 percent so far this month.

On the currency front, the USA dollar is trading at 108.82 yen compared to the 108.77 yen it fetched at the close of NY trading on Tuesday.

Automakers Toyota, Honda Motor and Nissan Motor as well as banks Mitsubishi UFJ Financial and Sumitomo Mitsui Financial lost 2-3 percent.

CURRENCIES: The euro rose to $1.1708 from $1.1664.

Royal Bank of Scotland Group shares fell over 1 percent in London after Ewen Stevenson resigned from his role as Chief Financial Officer and Executive Director to take up an opportunity elsewhere. Brent crude, used to price worldwide oils, added 1.3 percent to $76.47 a barrel in London. Halliburton slipped 0.9 percent.

Payroll processor ADP's monthly report showed USA private sector employment increased by 178,000 jobs in May.

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