U.S. Stocks, Commodities Decline as Bonds Gain on Dubai Crisis

U.S. and emerging-market stocks slumped and commodities dropped as Dubai’s attempt to delay debt repayments unnerved investors. Treasuries and the dollar rose while credit-default swaps surged.

The Standard & Poor’s 500 Index slid 1.7 percent to 1,091.49 at 1 p.m. in New York and the MSCI Emerging Markets Index slipped 1.8 percent at 4:36 p.m. The Chicago Board Options Exchange Volatility Index, the equity-derivatives benchmark known as the VIX, surged 21 percent. Two-year Treasury yields fell to the lowest level since December. Oil and copper tumbled and gold fell for the first time in 10 days as the Dollar Index advanced. Credit-default swaps tied to debt sold by Dubai rose 105 basis points to 646, according to CMA DataVision. (more)