US Stocks Dive, Hit By Europe Crisis, Investors Take Refuge In Dollar & Bonds

US stocks were at their worst yesterday as they made their biggest decline in the past three months. Worries surrounding Europe’s inability to solve Greece’s debt crisis, the investors shifted their focus from stocks and commodities to the US Treasury Bonds and the dollar.

The Dow Jones Industrial Average plummeted 2.02%, or 225.06 points, to 10,926.77. The S&P 500 Index slid 28.66 points or 2.4%, to 1,173.60. Meanwhile, the Nasdaq Composite Index slipped 74.49 points or 3%, its biggest percentage drop since Feb 4, to 2,424.25. "It is part Greece, part oil disaster and part unsuccessful terrorist plot and everyone is running for safety," said Stuart Hoffman, chief economist at PNC Financial.

While the Dow witnessed its worst single-day point drop in past three months on Tuesday, 27 of its 30 components closed lower. Among the worst hit stocks were equipment maker Caterpillar (NYSE: CAT) and aluminum producer Alcoa Inc (NYSE: AA), which declined more than 4%.

Stocks that managed to rise followed by earnings report that beat estimates are Pfizer Inc (NYSE: PFE) and Merck & Co (NYSE: MRK), which were up 2.1% and 1.5%, respectively. Wal-Mart Stores Inc (NYSE: WMT) was also up 0.5%.

On the S&P 500, materials and industrials led a broad decline that adversely effected all 10 industry groups.

Read more from Benzinga's Markets.