The Dow and the S&P 500 fell in a volatile session on Tuesday as fears that a $1 trillion bailout for Europe won't solve the region's deep-seated problems blunted an improving U.S. economic picture.
In a session marked by little news and low volume compared with recent days, investors dumped stocks in afternoon trading as worries about Europe's ability to contain Greece's fiscal problems crept back into the market.
Gold hit a new all-time high above $1,230 an ounce as investors sought the perceived safety of the precious metal, while falling crude oil prices hit shares of energy companies like Exxon Mobil Corp (XOM.N). The Arca Gold Bugs Index.HUI, which measures the performance of 16 gold miners' stocks, surged 6 percent.
"There's still a good amount of skepticism about whether or not the support plan works, whether or not European governments are ready to do the hard part of it and implement this austerity program," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.
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