Asian inflation, Irish economic news sink stocks

Stocks fell for a fourth day Tuesday as concerns over a slowdown in China and talks about a bailout for Irish banks combined to push the Dow Jones industrial average to its lowest level in a month.

Asian markets started a global sell-off after South Korea's central bank raised interest rates to curb inflation. Shares also fell in Shanghai and Hong Kong as speculation spread that China will take more steps to rein in its red-hot economy, which would dampen global demand for industrial goods.

"The fact that China is taking actions to tighten things up over there is having a big ripple effect here," said Bruce Simon, the chief investment officer at Ballentine Partners.

The Dow Jones industrial average fell 178.47 points, or 1.6 percent, to 11,023.50, having fallen below 11,000 earlier Tuesday for the first time since Oct. 20.

The Standard & Poor's 500 index fell 19.41, or 1.6 percent, to 1,178.34, while the Nasdaq composite index fell 43.98, or 1.8 percent, to 2,469.84.

All 10 industry groups in the Standard & Poor's 500, the index followed by most professional money managers, fell. Companies in the materials and energy industries lost the most ground, each falling more than 2 percent.

While Asian countries are dealing with excessive economic growth and inflation, European finance ministers were concerned that Ireland would be the latest European country to need a bailout. The country has so far refused any outside financial assistance.

A fiscal crisis earlier this year in Greece resulted in a global swoon in stock prices as investors questioned the viability of Europe's shared currency, the euro. Ireland's situation is different from Greece's, but their respective debt crises are having similar effects on markets. - AP