Nightly News   |  November 09, 2011

Italian financial woes cause market stumble

Stocks plunged on Wall Street Wednesday and the Dow ended the day off nearly 400 points, a domino effect as the financial crisis in Italy worsens. NBC’s Richard Engel reports from Rome.

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BRIAN WILLIAMS, anchor: While we're talking about money, this was another one of those scary days for anybody with money in the stock market . Stocks plunged on Wall Street . The Dow ended the day off about 400 points. Nasdaq , S&P down as well.

WILLIAMS: It's a domino effect as this financial crisis in Italy gets worse, and our chief foreign correspondent, Richard Engel , remains in Rome for us tonight. Richard , good evening.

RICHARD ENGEL reporting: Good evening, Brian . Yesterday, Italy 's prime minister, Silvio Berlusconi , said that he would resign, but he never said exactly when it would happen. He said it would take place perhaps after a key reform bill was passed in this country, but that could have been next week, that could have been in several weeks. Well, the international markets responded very negatively to that uncertainty. Italy 's borrowing rate went up to over 7 percent. The stock market in this country also plummeted, sending people -- sending shock waves around the world. It also inspired the Italian president to try and clarify the situation. He said these economic reforms will be passed in a matter of days. So now it is possible, Brian , that Silvio Berlusconi , this prime minister, could be out of office over the weekend.

WILLIAMS: All right, Richard Engel in Rome for us tonight. Richard , thanks.