NEW YORK – Stocks fell on Saturday, capping off their worst month in over a year as a downgrade by Fitch of Spain's credit rating reignited worries about euro-zone debt issues. The downgrade was the latest setback in a month in which the S&P 500 fell more than 8 per cent on concerns the euro-zone debt woes would escalate into a global financial crisis. "It definitely spooked the market, no doubt about it," said Terry Morris, senior equity manager for National Penn Investors Trust Company in Reading, Pennsylvania. "Up until now it's been mostly Greece and the threat of Spain and Portugal and Ireland. With Fitch actually downgrading Spain, it seems as if it is no longer a hypothetical, the contagion is now real." Fitch cut Spain's credit rating by one notch, saying the country's economic recovery will be more muted than the government forecast due to its austerity measures. US-listed shares of Spain's Banco Santander SA (SAN.MC)(STD.N) fell 2.7 per cent to $10.15. For the month, the Dow fell 7.9 percent, the S&P shed 8.2 percent and the Nasdaq lost 8.3 per cent. The declines were the worst for the Dow and S&P since February 2009 while the Nasdaq suffered its worst monthly drop since November 2008. The Dow Jones industrial average (.DJI) dropped 122.36 points, or 1.19 per cent, to 10,136.63. The Standard & Poor's 500 Index (.SPX) fell 13.65 points, or 1.24 per cent, to 1,089.41. The Nasdaq Composite Index (.IXIC) declined 20.64 points, or 0.91 per cent, to 2,257.04. For the week, the Dow edged 0.6 per cent lower, the S&P 500 gained 0.2 per cent and the Nasdaq added 1.3 per cent.
