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 rose to its highest close of the year Tuesday, ending 146 points from a record. Stocks gained after impressive results from two big consumer brands.
Don't look now, but the financial markets have been surging since the beginning of the year, and many experts expect the trend to continue for the remainder of 2013.