US stocks dropped after equities on Tuesday reached their highest level for the year, as utility and energy companies dropped while Greece and Germany met for debt negotiations.
According to The Wall Street Journal, the Dow jones industrial average dropped 0.2% or 34 points to 17,835. The blue chip index had dropped as much as 85 points. The S&P 500 dropped one point to 2,068 and the Nasdaq Composite gained 0.4% or 19 points to 4,807 after a boost by Apple Inc, whose shares climbed 1.9%. On Tuesday, Apple became the first $700 billion company in America.
Walter Todd, chief investment officer at Greenwood, South Carolina was quoted by Bloomberg as having said, “People have their eyes on two issues— one is earnings, which look pretty good, and the other is any headlines coming from Europe. Because we’ve been here before multiple times in the past five years with Greece, investors have become a little more numb to the events.”
Darren Wolfberg, head of US cash equity trading at BNP Paribas said, “Greece is definitely a risk. We saw a bit more hedging on European indexes over the last few days as some of the rhetoric escalated.”
European stocks dropped on concerns about Greece, with the Stoxx Europe lower 0.2% and the CAC 40 of France lower 0.4%. The new government in Athens wants to ease the conditions on its bailout program, but has met resistance from its creditors.
Eurozone finance ministers are meeting Wednesday in an emergency session to the discuss the situation. The latest standoff pushes Greece closer to a default and has revived the fears of the prospect of a forced exit by the country form Europe’s single-currency union.
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