Financials came under fire after Moody's Investors Service said it may cut the credit ratings of French banks, citing exposure to Greek debt.
U.S. data showed the U.S. economy is facing a troubling mix of higher prices and weak growth.
"Every day that we get another negative macro report -- they can't keep brushing it under the rug and say we are in a soft patch and it's only temporary," said Ken Polcari, managing director at ICAP Equities in New York.
"They tried to play the Greece thing off like it was going to be settled and clearly it's not, so it's all coming back to haunt them."
The day's losses left the S&P 500 within a stone's throw of its 200-day moving average of 1,256.82. If that level is breached, losses would be likely to accelerate.
Declines in insurers' shares outpaced the broader market, with the KBW insurance index .KIX down 3 percent. Allstate (ALL.N) lost 2.5 percent to $29.48.
Energy shares also depressed the market as signs of economic weakness fed worries about demand, sending crude to its lowest level since February. Chevron Corp (CVX.N), down 2.2 percent at $98.41, was the biggest drag on the Dow. TheNYSEArca oil index .XOI slumped 2.5 percent.
Source: Reuteres.com
Vivek Agrawal
Summer Intern-Fundamental Analysis
DENIP Consultants Pvt. Ltd.
No comments:
Post a Comment