Stocks declined as investors’ worries about global growth resurfaced, overshadowing strong U.S. data.

The Dow Jones Industrial Average, which was up 135 at its morning high, ended down 69.30 points, or 0.7%, at 9974.45, its first close below the 10000 mark since early February.

The swing was the latest evidence that even during rallies lately, buyers haven’t necessarily been motivated by strongly held conviction that economic strength will last. As a result, late swings have become an almost daily occurrence—one that many participants are expecting to last at least a little while longer.

“The volatility has been all about people questioning whether the global recovery is still intact,” said Bill Stone, chief investment strategist at PNC Advisors. “We tend to think it is, though it will probably move at half-speed,” compared to previous post-recession rebounds.

In the options market, a big bet was placed that the S&P could fall as low as 870 by September, testing its 52-week low set in July 2009, according to OptionMonster analyst Chris McKhann. The trade will take a could lead to a payoff of almost $68 million if the index does perform as expected, Mr. McKhann said.

The dollar edged higher against the euro, helping the U.S. Dollar Index to post a 0.2% gain. Treasury prices slipped, lifting the yield on the 10-year note to 3.241%. Crude-oil futures rose above $71 a barrel, while gold futures also climbed.

(Source: Wall Street Journal)