RE:Dollar up....gold up.Stocks closed sharply lower Thursday as banking stocks sank.
The three major indexes hit session lows shortly after Bloomberg reported that approximately 10 hedge funds were reducing their exposure to embattled European bank Deutsche Bank. Deutsche shares fell more than 7 percent in afternoon trade. The SPDR S&P Bank ETF (KBE) followed Deutsche shares lower, falling approximately 1.2 percent.
The Dow fell 195 points. The S&P 500 fell 0.9 percent. The Nasdaq also lost 0.9 percent as Apple and the iShares Nasdaq Biotechnology ETF (IBB) dropped.
Gold futures for December delivery fell 0.2 percent, or $2.90 to $1,320.90 per ounce.
Reuters contributed to this report.