Stocks sink on European worries, but Dow rebounds

A rally pushed the Dow Jones industrials back over 10,000 after the stock market sank Tuesday to its lowest level of the year. The late-day rebound did nothing to erase lingering worries about Europe's debt crisis.

The Dow plunged more than 250 points after the opening bell and stayed under 10,000 most of the day, then charged back to finish down only 22 when signals from Washington suggested banks would not be forced to sell their lucrative derivatives units as part of financial reform.

The Dow finished down 22.82 points, or .23 percent, at 10,043.75. The Nasdaq composite index closed down 2.60, or .12 percent, at 2,210.95, and the Standard & Poor's 500 gained 0.38, or .04 percent, to close at 1,074.03.

But investors are still concerned about European debt, and that's likely to mean more turbulent days like Tuesday.

"It seems like the Europeans are playing 'tag, you're it' - first it was Greece, and now it's maybe Spain or Portugal," said Jonathan Corpina, a New York Stock Exchange floor trader and president of Meridian Equity Partners. "We know someone else is next. The problem is that it seems like every plan in place isn't going to satisfy the needs."

Britain's Queen Elizabeth opened Parliament with a warning of hard times that will include budget cuts. Other European countries are imposing budget cuts as well, trying to control debt. Investors are concerned that these steps will stifle global economic growth. - AP