NEW YORK (AP) — Stocks are closing sharply lower after the head of the European Central Bank said there were no plans for large-scale government bond purchases, as many in the markets had hoped.

The ECB president's remarks Thursday sent borrowing costs soaring for countries with heavy debt burdens.

Bank stocks led the way lower. Morgan Stanley plunged 8 percent.

The Dow Jones industrial average dropped 199 points, or 1.6 percent, to close at 11,998. The drop was the worst in two weeks.

The S&P 500 fell 27, or 2.1 percent, to 1,234. The Nasdaq lost 53, or 2 percent, to 2,596.

More than six stocks fell for every one that rose on the New York Stock Exchange. Trading volume was below average at 4.1 billion.