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NEW YORK (CNNMoney) -- The fear trade picked up steam Tuesday, as investors grew increasingly worried about Europe's fiscal health. All three indexes closed down more than 1.5%, marking the fifth straight losing day for stocks. Early in the day investors, traded out of stocks after reading headlines about rising borrowing costs for Spain and Italy. As the day progressed, investors grew increasingly jittery over the health of the global economy, which caused the sell-off to intensify. "People are starting to get very concerned about the macro picture of both sovereign debt and China's slowing growth," said Sam Ginzburg, head of trading at First NY. "We're starting to get very worried about going back to a recession." The Dow Jones Industrial Average (INDU) closed down 214 points, or 1.7%, capping off the worst day since November 2011. The S&P 500 (SPX) lost 24 points, or 1.7%. The Nasdaq (COMP) fell 56 points, or 1.8%. The S&P 500 also had the worst day since November 2011, while Nasdaq posted the worst finish since December 2011. European stocks slumped more than 2%. First-quarter earnings: They won't be pretty Yields on Spain's 10-year bonds hovered just under 6%, the highest level in more than three months. Borrowing costs have been trending higher as the government struggles to push through budget cuts. In Italy, the yields rose near 5.7%. Peter Boockvar, chief equity strategist at Miller Tabak, said that while U.S. investors had been largely ignoring sovereign debt questions in Europe, the continent's problems cannot be ignored now. As part of a broad retreat from risky assets, investors jumped into U.S. Treasuries, driving the yield on 10-year Treasuries below 2% for the first time in more than a month. Twenty-nine of the Dow's 30 components ended in the red, with Bank of America (BAC, Fortune 500) leading the broad retreat. Oil and industrial stocks were also among the biggest decliners. GE (GE, Fortune 500), Caterpillar (CAT, Fortune 500) and Exxon (XOM, Fortune 500) fell more than 1%. The so-called fear index, the VIX (VIX), rose nearly 11% Tuesday and is up nearly 33% over the past five days. It's at 20.5, still far from 30 -- a reading that typically signals heightened investor fear. Investors got one positive surprise after the markets closed. Dow component Alcoa (AA, Fortune 500) beat earnings estimates when it reported after the closing bell. Alcoa's earnings unofficially begins the release of first-quarter financial results. Analysts are forecasting a 0.1% drop in first-quarter earnings for companies in the S&P 500 compared to a year earlier, according to FactSet. While that's not a major decline, it would mark the end of a nine-quarter winning streak. Stocks were on a tear in the first three months of this year, with the Dow and S&P 500 enjoying their best first quarter in over a decade. "We're essentially expecting no growth, but we could see earnings come in worse than that," said Boockvar. "I think we have the potential for some disappointment." Stocks finished lower Monday, as investors reacted to the disappointing March jobs report released last week. World markets: European stocks closed down sharply. Britain's FTSE-100 (UKX) slipped 2.2%, the DAX (DAX) in Germany dropped 2.5%, and France's CAC 40 (CAC40) shed 3.8%. In Asia, Japan's Nikkei (N225) slipped 0.1%, while Hong Kong's Hang Seng (HSI) lost 1.2% and the Shanghai Composite (SHCOMP) gained 0.9%. Economy: Wholesale inventories came in higher than expected for February with a 0.9% increase above the 0.5% rise forecast by economists. Inventories rose 0.4% in January. On Monday, Federal Reserve chairman Ben Bernanke said in a speech in Georgia that banks need to increase their capital buffers in order to ensure stability in the financial system. Companies: Shares of electronics retailer Best Buy (BBY, Fortune 500) surged then dropped after the company announced that CEO Brian Dunn had resigned and the company would begin a search for a new CEO. Sony (SNE) shares dropped after the electronics maker announced it expects an annual loss of more than double its previous projection. The company said the revision came after recording additional tax expenses, primarily in the United States. Shares of grocery retailer Supervalu (SVU, Fortune 500) were up 15%, after the company reported earnings that beat expectations and offered strong guidance. Apple's (AAPL, Fortune 500) shares hit another all-time high Tuesday. Introducing Wall Street's new rainmakers Currencies and commodities: The dollar gained against the euro and the British pound but fell against the Japanese yen. Oil for May delivery lost $1.32 to $101.14 a barrel. Gold futures for April delivery gained $16.60 to $1,660.50 an ounce. To top of page

Hong Kong (CNN) -- The Philippines said Wednesday that its largest naval vessel is engaged in a standoff with two Chinese maritime surveillance ships in a remote lagoon in the South China Sea. The Philippine Department of Foreign Affairs said the country's navy had sent the BRP Gregorio del Pilar, a 378-foot cutter, to the area of Scarborough Shoal on Sunday after surveillance aircraft spotted eight Chinese fishing boats anchored inside the lagoon. China and the Philippines both claim that Scarborough Shoal, about 200 kilometers west of the Philippine mainland, is "an integral part" of their territory. A boarding team from the Gregorio del Pilar went to inspect the Chinese fishing boats Tuesday morning and found "large amounts of illegally collected corals, giant clams and live sharks" inside one of the boats, the Department of Foreign Affairs said in a statement. Later Tuesday, the Gregorio del Pilar reported that the two Chinese surveillance ships had arrived and taken up a position at the mouth of the lagoon, blocking the way to the fishing boats and "preventing the arrest" of the fishermen. The situation remained the same Wednesday morning, the Philippine statement said. The Philippine foreign minister, Albert Del Rosario, is seeking a "diplomatic solution" to the situation with China, the statement said. The Chinese Embassy in Manila has complained to the Philippine authorities about "the harassment of Chinese fishermen," China's official news agency reported Wednesday. China has "urged the Philippine side to stop immediately their illegal activities and leave the area," Xinhua reported, saying that the fishermen were taking shelter in the lagoon "due to harsh weather conditions." The embassy is "still engaged in discussions with the Philippine Department of Foreign Affairs to seek a solution" and maintain peace and stability in the South China Sea, Xinhua said. The South China Sea -- a 1.3 million square mile patch of the Pacific Ocean bracketed by China and several Southeast Asian nations -- is dotted with hundreds of largely uninhabited islands and coral atolls that are home to some of the world's most diverse marine life. Also under its waves lie potentially huge reserves of natural gas and oil. That prospect has peppered the sea with competing claims from China, Vietnam, the Philippines, Malaysia, Brunei and Taiwan. It has also resulted in frequent small-scale clashes. Last year, a spate of incidents took place between Chinese and Vietnamese vessels.

(CNN) -- The 19-year-old Tulsa, Oklahoma, man whose Facebook page lamented his father's death "at the hands of a f--king n----r" told investigators he shot three of the African-Americans injured or killed in a Friday shooting spree, according to police documents. Fellow suspect Alvin Watts confessed to shooting the other two people, according to the documents, which include only summaries of the reported confessions and few details. Based on his statement, police believe Watts pulled the trigger in two of the three fatal shootings, according to the documents. A police spokesman declined to comment Tuesday when asked about the reported confessions. Authorities accuse the pair of gunning down apparent strangers at four different locations in a largely African-American section of Tulsa early Friday. Tulsa killing spree an act of revenge? Tips aided in Tulsa arrests 2 arrested in Tulsa shooting spree Click to enlarge mapClick to enlarge map Authorities identified the victims as Dannaer Fields, William Allen and Bobby Clark. The other two shooting victims survived. Police arrested Watts, 19, and Jake England, 33, early Sunday after tips led investigators to England's burned pickup. The vehicle matched one reported at the crime scenes, according to the arrest reports. A judge ordered England and Watts held Monday on $9.16 million bond each pending formal charges on allegations of murder, shooting with intent to kill and gun possession. Police reports characterize both men as white, but authorities have declined to say whether they think race played a role in the shootings. An update posted to England's Facebook page the day before the shootings noted it was the second anniversary of his father's death "at the hands of a f--king n----r." The entry also mentioned his girlfriend's recent suicide. Prosecutors will review whether hate crime charges are appropriate against England and Watts, Tulsa County District Attorney Tim Harris said Monday. "If the motivation is racial in this case, then that needs to be vetted in a court of law just like any others," Harris said. "It's the law of the state of Oklahoma, and if the facts and the evidence support that, then we're going to go forward with it." Police Chief Chuck Jordan described England and Watts as apparently close friends who shared a home in Tulsa. One survivor of Friday's shootings, Deon Tucker, told reporters Monday that he was standing on his porch when a white pickup pulled up and the driver asked him for directions. "Next thing I know, they start shooting," he said. "What are they shooting me for? I ain't got no enemies. I didn't know what was going on," recalled Tucker, who said he was shot once in the chest. He added that he understands that his race might have led to his shooting. But Tucker said he simply "got caught in the wrong spot" and isn't "mad at anybody," describing his shooter as a "lunatic." On Friday, a friend had warned England not to "do anything stupid" after he posted a message Friday, apparently after the shootings, that read "It just mite be the time to call it quits." "I hate to say it like that but I'm done if something does happen tonite be ready for another funeral later," England wrote. "It's hard not to go off between that and sheran I'm gone in the head," he wrote, referring to his girlfriend. The Facebook page was taken down Sunday afternoon. Watts' brother, Michael Watts, said the shootings "broke our heart," CNN affiliate KTUL reported. "If that boy done this, there's no excuse for it," KTUL quoted Watts as saying. "I just want to apologize to those families. My heart goes out to them." A man who identified himself as England's uncle -- speaking Monday outside the suspects' home -- said his nephew had been troubled by the recent suicide of his girlfriend and his father's death in April 2010. "His mind couldn't take it anymore, I guess," the man said. "I guess it just snapped his mind." Prosecutors declined to file homicide charges in the death of England's father, ruling it a justifiable homicide, the Tulsa County District Attorney's Office said in a statement Monday. England and Watts remained jailed Tuesday pending an April 16 arraignment. Meanwhile, prosecutors prepared formal charges against the pair. While Harris declined to say Monday if hate crime charges would be included, City Councilor Jack Henderson said the online posts and the circumstances of the shootings lead him to believe that the shooters targeted their victims chiefly because of race. "You have an individual -- a white male -- going into a predominantly black community (to) shoot at black people. And with the other evidence ... and some of the things that were said, that leads me to believe that this was totally a hate crime," Henderson said. Tulsa was the scene of a 1921 race riot -- considered one of the worst in the nation -- that destroyed the famed Greenwood District, a wealthy black enclave known as the black Wall Street. Harris said the community's response to the shootings said more about current race relations in Tulsa than the shootings should. "This community will not be defined by the treacherous, evil crimes of two individuals," he said. "That's not what Tulsa, Oklahoma, is about, and that's not what our people are about," he said. "The fact that this community drew together as one to stop this threat is what Tulsa is all about."