Wall Street Lower on Greece Economic Volatility


Wall Street Lower on Greece Economic Volatility

US stocks ended lower weighed down by renewed concerns over the latest setback in talks between Greece and her creditors over a potential bailout deal.

The Dow Jones Industrial Average slipped 107.67 points or 0.6% to end the day at 17,791.17. The blue-chip index had shed more than 200 points in earlier trading before paring losses on a mixed bag of US economic data.

The S&P 500 Index shed 10 points or 0.5% to end the day at 2084.43 points with all ten of the benchmark index’s main indexes ending lower. Technology equities led the losses with a 0.79% drop.

The technology heavy Nasdaq Composite fell 21.13 points or 0.4% to end the day at 5029.97 points.

“Rallies have been relatively short-lived, however, pullbacks have also held above technical levels. This suggests that it’s too early to jump the gun in deciding which way the market goes next,” Frank Cappelleri, executive director of Institutional Sales and Trading at Instinet, told Market Watch.

“If small and midcap stocks rally to new highs, large-caps will follow. But in the meantime, sideways trade is the most likely outcome for weeks to come,”

Talks between the two parties broke down less than an hour after the start on Sunday reigniting fears that Greece would default on its debts and sparking speculation over a possible exit from the Eurozone.

“The market has had a long time to prepare for (a Greek default) and has done what it can with what it sees on the horizon but with situations like this, there is always an unknown factor,”  Ashwin Bulchandani, head strategist at asset manager MatlinPatterson in New York, told Reuters.

“Uncertainty freaks the market out. It makes it very, very nervous.”

Trading volume was lower than usual with most investors holding out for the Federal Reserve meeting due later this week.

The Fed is expected to give the clearest indication yet on the timing of the rate hike with a small proportion of traders expecting it to start after the meeting.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com