By Canadian Press/BOE Report
NEW YORK — U.S. stocks are dropping sharply as investors worry that Italy could be seized with political paralysis, stymieing the country’s economic reforms and causing another flare-up in the region’s debt crisis.
The Dow Jones industrial average plunged 216 points to 13,784 Monday, a loss of 1.6 percent and the biggest drop since November.
The Standard & Poor’s 500 dropped 27 points, or 1.8 percent, to 1,487, and the VIX soared 35% to 18.99. The TSX finished down 50 points and the TSX venture was off 3.68 basis points.
An early gain was gone by midday after reports from Italy suggested that the country was headed for political gridlock following strong gains by former premier Silvio Berlusconi and a protest campaign led by a former comedian.
Watch video of the Italian election coverage below courtesy CNBC: