Stocks fall sharply as Europe worries deepen

NEW YORK (AP) — Stocks are falling sharply in midday trading as worries deepen about Europe's debt crisis and the weak U.S. economy.

Tuesday's losses in the U.S. market followed heavy selling in Europe. The Stoxx 600 Europe index is down nearly 5 percent this week.

U.S. bank stocks fell more than the overall market. Federal regulators filed lawsuits late Friday against 17 major banks over mortgage securities that lost value. Bank of America Corp. and JPMorgan Chase & Co. fell 4 percent.

A better reading on growth in the U.S. service sector did little to stem the market's losses.

The Dow fell 233 points, or 2 percent, to 11,007. The S&P 500 fell 24, or 2.1 percent, to 1,149. The Nasdaq fell 44, or 1.8 percent, to 2,436.