Nov. 22 (Bloomberg) -- The euro snapped a three-day rally versus the dollar, stocks and commodities slid and Treasuries rose as Ireland's financial bailout failed to assuage concern Europe's debt crisis may spread. Banks led U.S. shares lower as federal agents searched hedge funds in an insider-trading probe. The euro slid 0.3 percent to $1.3627. The Standard & Poor's 500 Index lost 0.2 percent to 1,197.84 and the S&P GSCI Index of commodities declined 0.3 percent. The costs to protect Irish and Portuguese debt from default surged, while the 10-year U.S. Treasury yield decreased seven basis points to 2.80 percent before a sale of $99 billion of notes this week. After the U.S. close, S&P 500 futures dropped 0.2 percent at 7 p.m. in New York while Australian and South Korean stocks fell in early trading. Financial companies led European and U.S. equities lower as Ireland became the second euro member to seek a rescue from the European Union and the International Monetary Fund, a move that may prevent a run on its lenders while threatening its credit rating and government coalition. The Federal Bureau of Investigation raided at least three U.S. hedge funds. "Deleveraging is sort of like a terrier," said James Dunigan, chief investment officer at PNC Wealth Management in Philadelphia, which oversees $105 billion. "It keeps annoying you. We've addressed Ireland's problems, but nobody knows who's next." The euro lost 1.1 percent versus the South Korean won and at least 0.5 percent versus the currencies of Taiwan, Switzerland and Japan. The dollar strengthened against 10 of 16 major peers. Financials Lead Declines Financial companies slumped 1.4 percent for the biggest decline among 10 industries in the S&P 500. JPMorgan Chase & Co. and Goldman Sachs Group Inc. dropped at least 2.3 percent. Losses were limited as Amazon.com Inc. led a rally in retailers before the start of the holiday shopping season, while Hewlett Packard Co. climbed 1.8 percent before reporting earnings after the close of trading. The world's largest computer maker jumped 3.1 percent in after-hours trading after forecasting first- quarter profit that topped analyst estimates. Two Connecticut-based hedge funds, Level Global Investors LP and Diamondback Capital Management LLC, were searched by the FBI today, agency spokesman Richard Kolko said. Agents also executed a search warrant at Loch Capital Management of Boston, according to a person familiar with the probe who declined to be identified because the matter isn't public. The raids stemmed from a series of insider trading investigations directed by the office of Manhattan U.S. Attorney Preet Bharara, according to a person familiar with the probes. Insider Trading Probe The Wall Street Journal reported that the Securities and Exchange Commission and other officials are nearing the end of an investigation into an insider-trading network involving hedge funds, mutual-fund traders and investment bankers. The report late Nov. 19 cited unidentified people familiar with the situation. One of the focuses is whether Goldman Sachs bankers divulged information about health-care acquisitions and other deals, the newspaper said. The benchmark indexes for U.S. and European stock options snapped three-day losing streaks as investors boosted buying of protection on equities. The VIX, as the Chicago Board Options Exchange Volatility Index is known, rose 1.8 percent to 18.37 in New York. The index measures the cost of using options as insurance against declines in the S&P 500. The VStoxx Index, which gauges the cost of protecting against a drop in the Euro Stoxx 50 Index, climbed 6 percent. "This FBI probe seems to be gaining some legs," said Dan Deming, a VIX options trader at Stutland Equities LLC on the floor of the CBOE. "The banking sector is feeling some heat across the board as the feds seem to be stepping up their game a little bit. It's definitely having an impact."

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