Investors sold off stocks in response to news that a Malaysian Airlines jet had crashed in eastern Ukraine today, reportedly killing 295 people. Ukrainian government officials said the plane may have been shot down; pro-Russian separatist fighters in the region denied responsibility. Then late in the trading day came reports that Israeli forces had begun a ground invasion of Gaza.
The S&P 500 index of large cap stocks fell more than 1% for the day. The Dow Jones Insutrial Average also declined, closing at 16,977, back below the 17,000 milestone it first crossed earlier this month.
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Investors in general moved away from risky to safer assets. The 10-year Treasury bond yield fell below 2.5%, down from 2.55% yesterday. A fall in bond yields means a rise in price, and reflects investors being willing to accept a low return in exchange for the safety of U.S. government-backed securities.